Guatemala pays US court award to dodge default

Guatemala, Antigua, Coronavirus, LatAm, 575
By Oliver West
26 Nov 2020

Guatemala has settled a long-running legal dispute with Florida-based Teco Energy, allowing it to pay bondholders and avoid defaulting on an international bond.

Bank of New York Mellon, Guatemala’s fiscal agent in the US, did not disburse a $15.75m coupon payment on Guatemala’s $700m of 4.5% 2026 notes to bondholders on November 3, even though the borrower had deposited the funds on time. The bank informed the government that its account ...

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