International creditors are preparing to sue the Ethiopian government after failing to reach an agreement on restructuring the nation's $1 billion Eurobond debt. The creditors' committee rejected the latest proposal, deeming it unviable, though they expressed willingness to consider a better alternative. A representative group has decided to file a lawsuit in a UK court to enforce their rights, building on a previous warning issued in April. Ethiopia was declared in default at the end of 2023 after missing an interest payment on the Eurobond and has been in negotiations since. A preliminary agreement from January was previously rejected by the Official Creditor Committee due to a "Value Recovery Instrument" violating the "comparability of treatment" principle. Despite disappointment, Ethiopia's Ministry of Finance stated its commitment to a market-based solution consistent with the IMF program.