Greece wins UK ruling on debt warrants buyback over creditor opposition
London Court Decision on Greek Debt Warrants Buyback
Background of the Debt Warrants Buyback
LONDON, May 6 (Reuters) - Greece won a court ruling in London on Wednesday approving its plans to buy back GDP-linked securities issued to holders of government bonds as part of the country's 2012 sovereign debt restructuring.
Greece had told investors that it wanted to repurchase all of the outstanding warrants due in 2042 for a call price of just over 25 cents on the euro and applied to London's High Court for declarations that its plan was lawful and binding.
Opposition from Creditors
A group of investors, represented by law firm White & Case, disputed that Greece had validly exercised its option to buy back the securities or calculated the call price lawfully.
Court Ruling and Potential Appeal
Judge Robert Bright ruled in Greece's favour, a decision which could be challenged on appeal.
Reactions from Key Stakeholders
Greek Officials' Response
Dimitrios Tsakonas, head of the Greek debt agency (PDMA), said the ruling provides clarity to the holders of the securities and the wider market.
Greek finance minister Kyriakos Pierrakakis praised the PDMA team for their work on debt reduction, telling Reuters via email that they were the "silent heroes" of Greece's recovery.
Creditors' Response
White & Case did not immediately respond to a request for comment.
About GDP-Linked Warrants
Definition and Characteristics
GDP-linked warrants are fixed income instruments that usually pay out once economic growth exceeds a certain threshold. They can be highly illiquid and complex to value.
Other Countries with Similar Instruments
Argentina and Ukraine have issued similar instruments to the Greek GDP warrant in debt restructurings.
Reporting Credits
(Reporting by Sam Tobin; additional reporting by Karin Strohecker and Lefteris Papadimas in Athens; Editing by Louise Heavens and Elaine Hardcastle)
