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Distressed-Debt Funds Team Up as Lebanon Bonds Plunge to Records

  • Bondholders are ready to engage with the government: Greylock
  • Lebanon must restructure as soon possible: Franklin Templeton
Security forces face protesters in Beirut on Feb. 11.

Security forces face protesters in Beirut on Feb. 11.

Photographer: Mahmut Geldi/Anadolu Agency via Getty Images
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Lebanon’s foreign debt sank to a record low as speculation mounted that the government may not repay a $1.2 billion Eurobond due in less than a month.

Investors are pondering what shape a default might take, with the crisis-ridden nation’s government wrangling over whether to continue servicing its liabilities. Distressed-debt investor Greylock Capital Management and Switzerland-based Mangart Capital Advisors announced they and other bondholders had formed a group to talk to the government about its options.