Sovereign paid several nonpayment claims to large European banks relating to bankruptcy and default by a state-owned company in Vietnam. This company had several large financing facilities outstanding and was unable to make payment under them due to an acute cash flow issue brought on by the economic crisis of 2009. When its business contracted dramatically, the company was unable to service its debts and defaulted on several loans and performance guarantees to foreign banks. Restructuring discussions with the borrower are ongoing.
