June 1, 2003
Standing (l-r): Robert Rauch, David Martens, Simon Morgan, Ernesto Robles, Richard Cooper, Peter Miller, David Smith, Michael Canning
Seated (l-r): Rodolfo Hearne, Neil Goodman, Paul Knight, Arthur Rubin, and Guillermo Jasson
Guillermo Jasson, managing director at Morgan Stanley, notes that, "there is more than $28 billion in restructured debt with advisors in Latin America. About 70% is in Argentina, 15% in Mexico and 15% is in Brazil and the rest of the region. This follows three key drivers. One, is the varying degrees of leverage and currency mismatches in the funding across countries. Two, companies' capital structures focus on
Latin America's great corporate debt crisis is in full swing. Nearly $30 billion in bonded and commercial bank debt is being restructured or has recently been renegotiated. The good thing is that those involved in this messy and unpleasant process - the borrowers, creditors and their advisers - have learned a lot. On a crisp April morning in New York, LatinFinance held a seminar in which a dozen of the best players in the business discussed how companies got into trouble, how talks are progressing, the nature of the challenges that lie ahead and how they can be overcome.