New failure of negotiations between Glencore, Natixis, Société Générale and Chad

New failure of negotiations between Glencore, Natixis, Société Générale and Chad

EXCLUSIVE Negotiations on the restructuring of a debt of 1.4 billion dollars contracted by Chad with the giant Glencore, associated with several international banks, failed again this Wednesday in Paris.

Glencore

The bridges are more than ever cut between Chad and Glencore. According to our information, negotiations on the restructuring of a debt of $ 1.4 billion contracted by Chad with the trading giant Glencore, associated with several international banks, failed again this Wednesday, December 20 in Paris. On the sidelines of the Paris summit on the G5 Sahel, on December 13, Chad, advised by Banque Rothschild & Cie, presented a new offer, pre-validated by the IMF, mentioning a staggering of repayment deadlines up to twelve years and advocating an interest rate 5% higher than that of the Libor.

A proposal rejected Tuesday afternoon in Paris by Glencore and the pool of banks made up of Natixis, Société Générale, Citigroup, ING and Deutsche Bank. The latter then formulated a counter-proposal, rejected by Chad, which counted on an interest rate 7.5% higher than that of the Libor, to which was associated a commitment fee (representing 0.75% of the principal of debt). Negotiations which then resumed on Wednesday yielded nothing. “We are in a total impasse, indicates a source close to the negotiations. Glencore is inflexible and proposes repayment terms that the IMF itself considers unrealistic ”.