Chad wants to resched­ule loan

The Star Early Edition - - COMPANIES -

CHAD is seek­ing to de­lay re­pay­ment of more than $1 bil­lion (R13bn) of Glencore-led oil-for-cash loans af­ter crude prices plunged, the sec­ond time the coun­try has looked to re­struc­ture the debt in two years, ac­cord­ing to peo­ple fa­mil­iar with the mat­ter. Glencore has ap­proached the banks that sup­ported the deal to start talks, while Chad has ap­pointed fi­nan­cial and le­gal ad­vis­ers for the dis­cus­sions, the peo­ple said, ask­ing not to be named be­cause the mat­ter is pri­vate. The pro­posed reschedul­ing high­lights the risk that Glencore and the banks have taken in Chad, lend­ing the land­locked coun­try the equiv­a­lent of al­most 15 per­cent of its gross do­mes­tic prod­uct. “Glencore is en­gaged in con­struc­tive dis­cus­sions with the gov­ern­ment and bank­ing part­ners,” the com­pany said in a state­ment. The debt ne­go­ti­a­tions come as re­la­tions be­tween Glencore and Chad cool. Last month, Idriss Deby, Chad’s pres­i­dent, crit­i­cised the deal with the com­modi­ties-trad­ing house. – Bloomberg

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