Greece is at the center of the ongoing dispute regarding the controversial warrants associated with AEP. According to Bloomberg, the Greek government has initiated legal action in the United Kingdom against Wilmington Trust, the trustee for the involved securities, as indicated by court documents filed last week.
The objective of the Greek government is to ascertain the legitimacy of its decision to repurchase all outstanding securities due to mature in 2042, as well as to validate the correctness of the repurchase price calculation.
This legal challenge arises as some securities holders question the legality of a notice issued by Greece in April, which activated a buyback clause (call option) set for settlement on May 14. Concurrently, investors are scrutinizing the method used to determine the buyback price, as stated by Greek officials.
The identities of the warrant holders opposing the buyback clause have not been revealed. Greece is being represented by the law firm Cleary Gottlieb Steen & Hamilton, which has not commented on the matter, while a spokesperson for Wilmington Trust also declined to provide remarks.
The warrants involved are financial instruments that generate returns only when a country’s economic growth surpasses certain predetermined thresholds.
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