A bondholder group said on Monday it was open to fresh proposals to restructure Ethiopia’s ​defaulted $1 billion international bond after rejecting the government’s latest ‌offer, while warning some members intend to pursue legal action.

Ethiopia’s bid to restructure its only international bond hit another stumbling block last week after bondholders ​rejected an offer that had been reworked to satisfy bilateral ​lenders.

“While the Committee remains open to considering alternative solutions, ⁠the Revised Proposal does not provide for a viable consensual ​restructuring solution,” the group said.

Talks have made slow progress for Ethiopia, ​which opted to restructure its debt in 2021 and defaulted in 2023.

The East African country struck a preliminary deal on the main financial terms ​with a group representing bondholders in January.

However, bilateral lenders represented ​by the Official Creditor Committee co-chaired by France and China, said the deal ‌did ⁠not meet the Comparability of Treatment principle, which requires a borrower to seek similar terms from all creditors.

This had prompted some members of the committee to put Ethiopia’s government formally on notice in ​April that they ​could take legal ⁠action in English courts.

“Given the lack of tangible results from the recent restricted discussions, those members ​intend to press forward with legal claims in ​the English ⁠court to protect and enforce their rights under the 2024 Notes,” the group said in its statement on Monday, without giving further ⁠details.

The ​price of Ethiopia’s 2024 bond was unchanged ​on Monday, bidding at 105 cents on the dollar, Tradeweb data showed.

–Reuters–