The bondholders formed the Peruvian Corporation[1] in order to fulfill certain obligations as a guarantee to recoup losses from the defaulted bonds.
To settle these debts the government had secured several loans, primarily through Dreyfus Frérale and the Guano Syndicate.
The War of the Pacific made financial concerns even worse and in October, 1889, Peru signed the Grace Contract.
Moves to address the Peruvian financial crisis included the Elias-Castellon and Irigoyen-Delgado-Donoughmore protocols, that were formalized by 1890.
[4] The Grace Contract did not settle the debts of the Guano Syndicate and the leader, Col. J. T. North (d. 1896-05-05) did not live to see repayment.