Debt crisis sparks political turmoil, Bruker Corporation's field (BAM.US) falls into default quagmire in Peru.

A subsidiary toll road operating company under Bruker Corporation's Field Asset Management (BAM.US) has caused strong dissatisfaction from a popular Peruvian presidential candidate due to its debt issues. The company has defaulted on $500 million in bonds, causing significant damage to the pension funds holding most of its debt. S&P Global, Inc. ratings indicated that the company named Rutas de Lima could only pay 6% of its outstanding debt of 1.8 billion Peruvian soles (approximately $524 million) to bondholders, resulting in a default. Standard & Poor's further downgraded its debt rating to D on Wednesday, indicating that the company had defaulted. A representative from Bruker Corporation's Field did not immediately respond to requests for comment. Rutas de Lima has become a primary target of former Lima Mayor Rafael Lopez Aliaga. The conservative figure is a popular candidate in the upcoming presidential elections later this month. He stated that the toll road contract was obtained through corrupt means, affecting poor families disproportionately, and should be terminated. Lopez Aliaga recently welcomed the announcement of the liquidation of Rutas de Lima, as a local court ruling had already stripped the company of its rights to collect tolls and generate income. Bruker Corporation's Field has filed a $2.7 billion arbitration claim against Peru, alleging unlawful expropriation of its toll road project. If elected, Lopez Aliaga stated that the Peruvian government would file a counterclaim against Bruker Corporation's Field seeking $3 billion in damages. The bonds were issued ten years ago and were the largest local currency-denominated corporate bond in Peru at the time. Standard & Poor's stated, "Given that the project is completely unable to generate cash flows, we expect debt restructuring to be difficult to achieve."