Greece wins UK ruling on debt warrants buyback over creditor opposition

LONDON, ​May ⁠6 (Reuters) - Greece won a court ​ruling in London on Wednesday approving its plans to buy back GDP-linked securities ​issued ‌to holders of government bonds as part of the country's 2012 ⁠sovereign debt restructuring.

Greece had told investors ⁠that it wanted to ​repurchase all of the outstanding warrants due in 2042 for a call price of just over 25 cents on the euro and applied ​to ‌London's High Court for declarations that its plan was lawful and binding.

A group of investors, represented by law firm White & Case, disputed that Greece had validly exercised its option ​to buy back the securities or calculated the call price lawfully.

Judge ‌Robert Bright ruled in Greece's favour, a decision which could be challenged on appeal.

Dimitrios Tsakonas, ‌head of the Greek debt agency (PDMA), said the ruling provides clarity to the holders of the securities and the wider market.

Greek finance ​minister Kyriakos Pierrakakis praised the PDMA team for their work on debt reduction, ‌telling Reuters via email that they were the "silent heroes" of Greece's recovery.

White & Case did not immediately respond to a request ⁠for comment.

GDP-linked warrants ⁠are fixed income instruments that usually pay ‌out once economic growth exceeds a certain threshold. They can be highly illiquid ​and complex ​to value.

Argentina and Ukraine have issued similar ‌instruments to the Greek GDP warrant in debt restructurings.