LENDERS’ PLAN
Mozambique turns down restructuring plan by lenders
Mozambique turned down a restructuring plan by lenders, including Credit Suisse Group, for one of the state-owned companies at the centre of a hidden-debt crisis, the government’s financial advisers said. "The proposal from the ProIndicus lenders has been considered by the Mozambique authorities and their advisers," Lazard Freres said. "However, as the lenders have been advised, the proposal does not meet the requirements of the authorities and is not considered a viable basis for a solution." Credit Suisse was the lead arranger for a $662m loan to ProIndicus, a state-owned maritime-security firm, for patrol boats and other infrastructure in 2013. Russia’s VTB Bank arranged $118m of the debt. Donors and the IMF froze aid to the government after about $1.4bn of undisclosed loans, including the ProIndicus facility, were uncovered in 2016. The crisis over hidden debts led to the southeast African nation defaulting on bond repayments. A group representing a majority of the holders of Mo...
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