Ethiopia risks UK courts over failed bond restructuring

Aerial view of Addis Ababa. Bondholders have warned Ethiopia of legal action over failed debt deal.

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A key group of international investors has formally put Ethiopia’s government on notice that they could take legal action in English courts in May after a recent restructuring deal fell apart, two sources familiar with the situation said.

The steering committee of the Ethiopia bondholder group sent a so-called “pre-action letter” in the week before the International Monetary Fund and World Bank Spring Meetings in Washington.