Investment in US Bonds?
Question:
Have I to be a mere spectator to this break up ,and the company's directors/management has un lim ited right to repay my debt at their choice?
Since we are loacted outside US and are not aware of US laws. Can anyone provide any help
Answer:
When you buy bonds of US Corporations, you get what you negotiate.
In order to figure out what your rights are, you need to read the bond's covenent. Some bond covenents protect the investors while others do not.
If you can't find a copy of the covenent or don't understand it, contact the trust company that is supposed to watch out for your interests and ask them to explain it to you. If you don't know who they are, ask the investment bank that sold the bond to you.
If you have invested a very large sum of money, I think you should obtain advice of legal counsel. You do have rights, but the complete fact situation probably has to be understood and analyzed to determine what steps you should take.
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