ECONOMY

Greece fails to get quorum among Swiss bondholders

Greece failed to get a quorum of investors at a meeting to agree a 68.5 percent reduction in the value of one of its international bonds on Wednesday.

Holders of 66 percent of the nation?s 650 million Swiss francs of 2.125 percent bonds due 2013 had to attend the meeting to form a quorum, according to the statement calling the meeting.

No quorum was present and a resolution that would have cut principal to 31.5 cents on the franc and extended their maturity was not approved, according to a notice on the SIX Swiss Exchange website.

A bondholder meeting is typically reconvened if a quorum isn?t present at a meeting called to restructure a bond.

If a quorum is not present at a second meeting, Greece may face the choice of paying the coupon when interest is due in July, or of failing to pay and risking triggering cross-default clauses in other debt securities.

[Bloomberg]