Part III Sovereign Debt Restructuring, 11 Litigation Aspects of Sovereign Debt

2016 ◽  
Author(s):  
Olivares-Caminal Rodrigo ◽  
Douglas John ◽  
Guynn Randall ◽  
Kornberg Alan ◽  
Paterson Sarah ◽  
...  
Keyword(s):  
Sovereign Debt ◽  
Close Reading ◽  
Debt Restructuring ◽  
Unsecured Debt ◽  
Syndicated Loan

This chapter starts the study of litigation aspects of a sovereign debt by looking at the effect of a disruption in the economy in terms of legal options for recovery. The chapter also looks at the pari passu clause in sovereign debt instruments. A pari passu clause is a standard clause included in public or private international unsecured debt obligations (syndicated loan agreements and bond issuances). From a close reading of the clause, it can be argued that it has two limbs: firstly, an internal limb, ie that the bonds will rank pari passu with each other; and, secondly, an external limb, ie that the bonds will rank pari passu with other unsecured (present or future) indebtedness of the issuer. Not all pari passu clauses are drafted in the same way, and they will vary according to the drafter. The chapter considers various relevant cases.

Part III Sovereign Debt Restructuring, 10 An Introduction to Sovereign Debt Restructuring

2016 ◽  
Author(s):  
Olivares-Caminal Rodrigo ◽  
Douglas John ◽  
Guynn Randall ◽  
Kornberg Alan ◽  
Paterson Sarah ◽  
...  
Keyword(s):  
New York ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Hedge Fund ◽  
Sovereign Debt Crisis ◽  
Debt Restructuring ◽  
New Developments ◽  
Unsecured Debt ◽  
Brady Plan ◽  
The Eu

This chapter starts by introducing the Brady Plan which aimed to address the debt crisis that occurred in the developing countries during the 1980s. The chapter also looks at new developments which have taken place in the area of sovereign debt restructuring since the Brady Plan. These are the EU sovereign debt crisis, and the ongoing Argentine litigation in New York. The former is a debt crisis that was originated in Greece in late 2009 and has been taking place in other Euro-areas ever since and has affected Portugal, Ireland, Spain, and Cyprus. The ongoing Argentine litigation in New York relates to a claim initiated by a hedge fund to collect on defaulted debt obligations issued by Argentina based on the breach of the pari passu clause. The pari passu clause is a standard clause in public or private international unsecured debt obligations.

Jurisdiction and Cognate Matters

2018 ◽  
Author(s):  
Hayk Kupelyants
Keyword(s):  
Sovereign Debt ◽  
English Court ◽  
Debt Restructuring ◽  
International Jurisdiction ◽  
Class Actions ◽  
Brussels Regulation

Chapter 3 examines the international jurisdiction in sovereign debt disputes and particularly the following matters: service of proceedings; the jurisdiction under the Brussels Regulation, the jurisdiction under English national rules; individual standing of beneficial bondholders; class actions. The chapter also examines the issue of pre-emptive strikes in sovereign debt litigation, in other words whether private creditors may initiate legal actions before the conclusion of the sovereign debt restructuring and how courts may constrain such litigation. The chapter argues that the English courts may stay proceedings if they are brought in contravention of the powers of bondholders under majority action clauses. The chapter lastly addresses the issue of whether the majority may modify the bonds after the English court has issued a judgment.

Risk Management Optimization for Sovereign Debt Restructuring

2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Andrea Consiglio ◽  
Stavros A. Zenios
Keyword(s):  
Risk Management ◽  
Scenario Analysis ◽  
Sovereign Debt ◽  
Risk Measure ◽  
Policy Tools ◽  
Debt Restructuring ◽  
Tail Risk ◽  
Debt Sustainability ◽  
Scenario Optimization ◽  
Management Optimization

AbstractDebt restructuring is one of the policy tools available for resolving sovereign debt crises and, while unorthodox, it is not uncommon. We propose a scenario analysis for debt sustainability and integrate it with scenario optimization for risk management in restructuring sovereign debt. The scenario dynamics of debt-to-GDP ratio are used to define a tail risk measure, termed

Sovereign Debt Restructuring and Bank Capital

1999 ◽  
Vol 6 (2) ◽  
pp. 197-207
Author(s):  
Yoram Landskroner ◽  
Jacob Paroush
Keyword(s):  
Sovereign Debt ◽  
Bank Capital ◽  
Debt Restructuring

Sovereign Debt Management During Debt Distress Periods

2018 ◽  
Keyword(s):  
Sovereign Debt ◽  
Market Access ◽  
Debt Crisis ◽  
Debt Management ◽  
International Capital ◽  
Debt Restructuring ◽  
Economic Program ◽  
Lending Decisions

Sound public debt-management policies during sovereign debt distress periods are key to efficiently resolving a debt crisis and regaining market access. In addition to understanding the causes, processes, and outcomes of sovereign debt restructurings, this article analyzes the role of the debt manager along with determinants and strategies to maintain/regain market access. The sovereign’s debt sustainability analysis and determination of loss of market access are two crucial elements in the IMF’s lending decisions to countries in debt distress. Various indicators used in assessing whether the sovereign can tap international capital on a sustained basis are discussed. When a sovereign debt restructuring needs to be undertaken, it is necessary to determine the financial terms of the debt operation. Some key principles in designing sovereign debt restructuring scenarios and ways in securing full-financing of the economic program and regaining market access are presented. We conclude by offering a few best practices on preventing and managing sovereign debt restructurings.

Greek Debt Restructuring Case

2021 ◽  
Vol 195 ◽  
pp. 227-238
Keyword(s):  
International Law ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Secondary Market ◽  
Federal Republic Of Germany ◽  
Debt Restructuring ◽  
Content Type ◽  
State Immunity ◽  
Basic Law

227State immunity — Jurisdictional immunity — Exceptions — Acta jure gestionis — Acta jure imperii — Once a trader always a trader — State of emergency — Law-making — Legislature regulating legal relations initially established by acta jure gestionis qualifying as acta jure imperiiEconomics, trade and finance — European Monetary Union — Hellenic Republic — Public debt — Bonds — Greek sovereign debt crisis — Sovereign debt restructuring — Collective Action Clauses — Secondary market — Bond exchange — Financial stabilityRelationship of international law and municipal law — Compatibility with Basic Law of the Federal Republic of Germany — General principle of international law — Article 25 of German Basic Law — Right to a lawful judge — The law of Germany

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