Bonds of builder of Panama’s Trump Ocean Club drop sharply in wake of announcement of debt restructuring
Newland International Properties bonds issued to finance construction of Panama’s Trump Ocean Club tumbled a day after the property’s chief financial officer said the bonds may be restructured before a Nov. 15 payment.
Yields on the bonds that mature in 2014 rose 12 percentage points to 33 percent, a record high. The securities’ price fell 17.95 cents to 56.6 cents on the dollar.
Moody’s Investors Service downgraded the bonds to Caa3, nine levels below investment grade.
Original source: Bloomberg