Last week Friday night, the big breaking news was that Superbond 3.0 was just about a done deal. Government had made a revised final proposal and the creditor committee had accepted it. That deal expired today at 5:00 pm New York Time. At that time government had hoped to have buy-in from 75% of the bondholders. That 75% would trigger what's known as a collective action clause, forcing all bondholders in, and sealing the deal.
But, that didn't happen, and the news tonight is that Government has had to grant another extension. A press release posted on the government's website a few hours ago says that government is now extending the offer to Wednesday, 15th March, 2017.
So is this a sign of trouble ahead? Or that the re-negotiation which government has boasted about might not go through? Not really. Those close to the process say it's really more of a paperwork issue than anything else. We are told that 75% of the bondholders have consented and it's just a matter of processing the paperwork to make it official. In today's press release, the financial secretary is quoted as saying, quote, "a large number of positive responses to the revised Consent Solicitation has already come in and…this extension is merely to give a bit more time for the process to be completed.