China’s Feud With Bondholders Could Reset Debt Workout Rules

  • Zambia’s restructuring seen as test case for poor nations
  • China-U.S. rift complicates talks with private creditors
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The last time Zambia renegotiated its external debt, the well-oiled machine established by institutional lenders and western governments handled it with little trouble.

But 15 years later, with the southern African nation in the throes of a $12 billion debt overhaul, China and bondholders have emerged as powerful new players to upend the choreography.