Peru Hides $5 Billion Land Bond Default and Misleads International Investors While Promising "Great Opportunities" in Road Show

The Land Reform Bondholders Association (ABDA) again calls on Peru's Finance Minister Alonso Segura and Ambassador to the US Luis Miguel Castilla to openly respond to bondholder issues

Mar 09, 2016, 10:34 ET from The Land Reform Bondholders Association (ABDA)

NEW YORK, March 9, 2016 /PRNewswire/ -- Today at 3:30 pm ET at the Palace Hotel (455 Madison Avenue, New York, NY) Peru's Finance Minister Alonso Segura and its Ambassador to the United States Luis Miguel Castilla will speak at Peru's Road Show detailing its foreign investment opportunities titled, "Peru: Emerging Country of Great Opportunities."

Mr. Segura and Mr. Castilla will be extolling the benefits of investing in Peru, while at the same time refusing to acknowledge the decades-old land bond debt and the violation of US Securities laws in Peru's debt prospectuses.

Ramon Remolina, president of ABDA, stated:

"The current administration of President Ollanta Humala has engaged in a campaign of deception against thousands of Peruvians whose land was seized decades ago and are still awaiting compensation.

"Peru is hiding behind a tainted ruling by the Constitutional Tribunal that is the subject of a criminal indictment against former court secretary Óscar Díaz.  The court decision, and subsequent supreme decree, leave bondholders with a 99.5% haircut on the value of their bonds and forces them to turn over all of their rights."

While Peru has done so much to fix many of its economic and legal issues to gain international favor, the land reform debt taints those efforts, and the Humala administration must correct this problem by doing the following:

  • Tell bondholders exactly what compensation they will receive under the supreme decree;
  • Tell the truth to our international investors and completely disclose in Peru's US SEC filing the history of the land reform bonds, Peru's default on those bonds, current disputes and judgments against the country, and the estimated outstanding value of the bonds; and
  • Completely disclose the Humala administration's role in the white out scandal.

Today's Road Show will provide interested parties an opportunity to directly ask Minister Segura and Ambassador Castilla to answer these charges and provide specific answers to these serious issues.

Contact Information:

Martin Leon / Luisa Garcia
Llorente & Cuenca
+51 1 222 9491
mleon@llorenteycuenca.com / lgarcia@llorenteycuenca.com

SOURCE The Land Reform Bondholders Association (ABDA)