NEW YORK, March 12 (IFR) - Boston-based investment firm GMO and Ecuador are close to reaching a settlement over some US$16m of bonds on which the South American country voluntarily defaulted in 2008, according to court documents.
In a letter to US District Judge Katherine B. Forrest lawyers for Ecuador said the sovereign and GMO Trust are working on “a definitive settlement agreement” which they expect to finalise and implement by March 30.
Ecuador is in the midst of a series of investor meetings ahead of a potential new international bond issue, its second since the 2008 default.
During the roadshow, government officials said the country remains open to settle claims holdout creditors still have on about US$60m of outstanding defaulted debt, according to an investor who attended the meetings. Lawyers for Ecuador and GMO did not immediately respond to requests for comment made outside of regular business hours. (Reporting By Davide Scigliuzzo, editing by Daniel Stanton)