Bond restructurings leave millionaire investors reeling

Credit quality is deteriorating.

Deep-pocketed investors in Singapore are learning the hard way that they lack clout in negotiations when high-yield bond investments blow up.

PT Trikomsel Oke became the first company to default on Singapore dollar debt since 2009 when it failed to repay a bond coupon in November last year, followed shortly afterwards by Pacific Andes Resources Development Ltd. The market faces more tests with Swiber Holdings Ltd.’s July 6 maturity among S$2 billion ($1.5 billion) of notes coming due this year.

According to a report by Bloomberg, fragmented wealthy investors face hurdles in restructuring talks, including organizing negotiating groups and potentially prohibitive legal fees.

Read the full report here.