Lanka seeks 5-month extension for Hamilton case suspension

ECONOMYNEXT – Sri Lanka has sought a 5-month extension in the suspension of a case filed by Hamilton Reserve, a holdout investor who is seeking immediate payment on a defaulted bond series in which it claims a 25 percent stake, reports said.

Sri Lanka had sought the extension of a six-month extension given by a New York court, to conclude restructuring negotiations with bondholders, having got an in-principle deal with official creditors.

Hamilton Reserve had objected to the case, Bloomberg Newswires reported.Hamilton Reserve had objected saying, Sri Lanka was not keeping it informed of the progress of discussions with bondholders.

Meanwhile another bondholder, Ultimate Concrete and Intercoastal Finance has intervened.Judge Denise Cote had given till March 15 for Hamilton Reserve to reply and till March 22 for the intervenient petitioner also to reply if it wanted to.

On Friday, Sri Lanka sought an extension of a delay of the lawsuit that was granted in November. Hamilton Reserve opposed the new request, saying that the country has kept the bank “in the dark” about the negotiations despite repeated requests for information.