Restructuring Sovereign Debt Under Local Law: Are Retrofit Collective Action Clauses Expropriatory?

Boudreau, Melissa

doi:10.2139/ssrn.1979238

Cited by 7 publications

(3 citation statements)

References 2 publications

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“…In addition, the extraterritorial application also implicates the issue of whether such application is consistent with customary international law and any applicable treaties or other international agreements. In a similar context, Melissa Boudreau has examined whether the recent Greek "Mopping-Up Law" would constitute an invalid expropriation under international law if considered by a US court (Boudreau 2012). She describes the Mopping-Up Law as one that "would change local law to effectively incorporate a collective action clause in all untendered local-law bonds" and concludes that a claim of invalid expropriation would be unlikely to succeed (Ibid.).…”

Section: Operation Of Law Governing Sdrm: Constitutional Impedimentsmentioning

confidence: 99%

“…37 The No-Tribunal SDRM approach, considered above in Part 4, would be such an out-of-court arrangement. 38 This was the approach taken in the restructuring of Greek debt under the "mopping up law" that effectively imposed CACs on debt contracts governed by the law of Greece (Boudreau 2012). Dissenting, "holdout" creditors generally would be bound by operation of a supermajority vote of creditors in an enforcement action outside of Greece inasmuch as most jurisdictions would respect the contractual choice-of-law provision.…”

Section: Implementation Of An Sdrmmentioning

confidence: 99%

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A No-Tribunal SDRM and the Means of Binding Creditors to the Terms of a Restructuring Plan

Mooney

2015

Journal of Globalization and Development

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This paper addresses two discrete but related and essential attributes of an SDRM. It first considers an SDRM that would provide a procedure for proposing and adopting a restructuring plan for a sovereign debtor's debt which would not involve any tribunal or administrator (a No-Tribunal SDRM). The paper examines the merits and feasibility of a No-Tribunal SDRM. In particular, the No-Tribunal SDRM proposed here would undertake the restructuring as if the sovereign debtor and its creditors were subject to the International Capital Markets Association Model Collective Action Clause regime. Second, this paper addresses the means by which a sovereign debt restructuring plan may become legally binding on a sovereign debtor's creditors. It focuses on the various legal structures that could be employed to cause a sovereign debtor's creditors to be legally bound by a restructuring plan -the implementation of a restructuring plan under an SDRM. This matter of binding creditors is an area of legal analysis that is somewhat underdeveloped and neglected in the literature. The paper addresses on implementation of a restructuring plan under a statutory approach -an SDRM imposed by rule of law. The manner of implementing an SDRM may be significant in several contexts, including the acceptability of the SDRM to political actors and market participants, the effectiveness of the operation of an SDRM, and the costs of devising and adopting an SDRM.

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Section: Operation Of Law Governing Sdrm: Constitutional Impedimentsmentioning

confidence: 99%

Section: Implementation Of An Sdrmmentioning

confidence: 99%

A No-Tribunal SDRM and the Means of Binding Creditors to the Terms of a Restructuring Plan

Mooney

2015

Journal of Globalization and Development

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“…Cette législation, en modifi ant avec effet rétroactif les termes du contrat d'émission, était susceptible, entre autres, d'avoir un effet confi scatoire pour les obligataires. Il était évident -et sans doute anticipé par les autorités grecques -que des investisseurs envisageassent sérieusement de contester cette mesure en sollicitant la Cour européenne des droits de l'homme (Cour EDH) ou en initiant des procédures d'arbitrage sur le fondement de traités bilatéraux relatifs à la protection des investissements étrangers (TBI) 129 . Une banque slovaque détentrice d'obligations intégrées dans cette restructuration et son actionnaire principal basé à Chypre ont ainsi introduit en mai 2013 une requête contre la Grèce auprès du CIRDI 130 mais son contenu n'a pas été rendu public.…”

Section: B Les Clauses D'action Collective Révélateur D'un « Ordre Pu...unclassified

L’émergence d’un « ordre public de la dette souveraine » pour et par le contrat d’emprunt souverain ? Quelques réflexions inspirées par une actualité très mouvementée

Bismuth¹

2012

afdi

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The recent period has been rich in events highlighting the shortcomings of mechanisms for managing sovereign debt crises. Both the difficulties which Greece has been going through and the many litigious consequences of Argentina’s 2001 default have revealed the obstacles to implementing effective restructuring schemes and to neutralising proceedings brought by creditors not wishing to be part of them. Against this impression of disorder and impediments to the introduction of bankruptcy proceedings for states, the borrowing agreement appears to be the most suitable instrument for ensuring orderly management of problems of state solvency. In this context, it seems legitimate to question the emergence of a ‘ public order of sovereign debt’ the keystone of which would be this borrowing agreement between states and their creditors.

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Financial Turmoil as a Change of Circumstances Under Greek Contract Law

Davrados

2016

Ius Comparatum - Global Studies in Comparative Law

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Restructuring Sovereign Debt Under Local Law: Are Retrofit Collective Action Clauses Expropriatory?

Cited by 7 publications

References 2 publications

A No-Tribunal SDRM and the Means of Binding Creditors to the Terms of a Restructuring Plan

A No-Tribunal SDRM and the Means of Binding Creditors to the Terms of a Restructuring Plan

L’émergence d’un « ordre public de la dette souveraine » pour et par le contrat d’emprunt souverain ? Quelques réflexions inspirées par une actualité très mouvementée

Financial Turmoil as a Change of Circumstances Under Greek Contract Law

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