How to Restructure Argentine Debt
11 Pages Posted: 21 Apr 2020
Date Written: April 16, 2020
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.
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