Minimising Hold Out Creditors : Carrots / Lee Buchheit & Elena Daly -- Minimising Hold Out Creditors : Sticks / Lee Buchheit and Elena Daly -- Manging Hold-outs : The case of the 2012 Greek Exchange / Jeromin Zettelmeyer, Christoph Trebesch and G. Mitu Gulati -- Revisiting the pari passu clause...

How should the contingent liabilities of a sovereign be treated in a general restructuring of the debts of that sovereign? This question has played only a minor role in past sovereign debt restructurings because the size of such contingent liabilities has in most cases been small. In recent...

The Eurozone official sector has declared that the belated restructuring of Greek bonds held by private sector creditors in 2012 was a “unique and exceptional” event, never, ever to be repeated in any other Eurozone country. Maybe so. But if this assurance proves in time to be as fragile as...

Plan A for addressing the Greek debt crisis has taken the form of a €110 billion financial support package for Greece announced by the European Union and the International Monetary Fund on May 2, 2010. A significant part of that €110 billion, if and when it is disbursed, will be used to...

The Eurozone sovereign debt crisis began in the spring of 2010. Seven years on seems like an appropriate point at which to critique how the crisis has been handled and to assess whether policy changes will be required should it flare up again. In particular, there are a number of lessons to be...

This paper attempts to provide a playbook for the sovereign debt restructuring process, drawing on the experience with sovereign debt restructuring since the 1980s. It begins with a discussion of the participating actors and their interests. It then describes the considerations that must be...

The decade and a half of litigation that followed Argentina's sovereign bond default in 2001 ended with a great disturbance in the Force. A new creditor weapon had been uncloaked: The prospect of a court injunction requiring the sovereign borrower to pay those creditors that decline to...

The pari passu clause was designed as a contractual promise to maintain the legal ranking of an instrument at a level equal (not subordinate) to the borrower's other senior indebtedness in other debt instruments. It was never the intention of pari passu covenants, which in their current form...