Luanda — A group of key Mozambique bondholders laid down terms to the embattled government ahead of restructuring talks, calling on it to revoke guarantees on loans taken on by two state-owned companies. Mozambique, which defaulted on its only Eurobond in January, should also liquidate the two firms — ProIndicus and Mozambique Asset Management (MAM) — as well as a third, tuna-fishing company Ematum, the so-called Global Group of Mozambique Bondholders said. It was the first response from bondholders to an audit of Mozambique’s debts by Kroll LLC, commissioned by the country’s attorney-general and released on June 24. The corporate investigations firm said the three companies failed to account for about a quarter of $2bn of state-backed loans they took on in the past five years. "It is evident that there is no basis — in either Mozambican or English law — for the Mozambique government to honour the purported guarantees of the Proindicus and MAM loans," the bondholders’ statement read...
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