| Headline: Exit consents pose threat to creditors’ rights Source: Euromoney Date: April 2001
Ecuador’s offer was richer than the market had expected – that was the carrot. But exit consents comprised a big stick. Every bondholder who tendered into the exchange was required to vote in favour of a long list of amendments to provisions in the original bond documentation, all of which made holding the original bond much less attractive. By the time the offer was finished, many of the rights written into bondholders’ documentation no longer existed. | |||||||||||||||||||||||||||||||||||||||||