How to Restructure Argentine Debt

11 Pages Posted: 21 Apr 2020

See all articles by Francisco Bianchetti

Francisco Bianchetti

Duke University, School of Law

Chuck Matula

Duke University, School of Law

Filippos Papageorgiou

Duke University, School of Law

Daniel Rozenblatt

Duke University, School of Law

Date Written: April 16, 2020

Abstract

We propose that Argentina make an exchange offer that, if accepted by a majority of creditors, could (i) preclude potential holdouts from successfully suing Argentina over a violation of the pari passu clause, and (ii) force potential holdouts to litigate in Argentine courts. Also, we propose to amend the terms of the 2005 Indenture with the approval of holders of 67% of bond principal. This amendment would dissuade potential holdouts from resisting a restructuring. Finally, we propose that Argentina request a temporary stay on payment of interest until the resolution of the financial crisis caused by the COVID-19 pandemic. This stay, we believe, may be granted by Argentine courts.

Suggested Citation

Bianchetti, Francisco and Matula, Chuck and Papageorgiou, Filippos and Rozenblatt, Daniel, How to Restructure Argentine Debt (April 16, 2020). Available at SSRN: https://ssrn.com/abstract=3577348 or http://dx.doi.org/10.2139/ssrn.3577348

Francisco Bianchetti (Contact Author)

Duke University, School of Law ( email )

Durham, NC
United States

Chuck Matula

Duke University, School of Law ( email )

Durham, NC
United States

Filippos Papageorgiou

Duke University, School of Law ( email )

Durham, NC
United States

Daniel Rozenblatt

Duke University, School of Law ( email )

Durham, NC
United States

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