As the country’s debt saga
continues, attention has turned to its ramifications for future
government bond offerings and restructures
For the second time in thirteen years, the government of
Argentina has defaulted of its bonds. Compared to other recent
sovereign debt crises, Argentina's has played out against a
rather animated backdrop involving a US court case,
restructured debt holders, and disgruntled holdout creditors.
|What will be
Argentina’s greatest legacy for sovereign
In 2012, a US appeal court ruled that if Argentina was to
repay restructured lenders, then it must fully repay holdout
creditors. This, and the subsequent order preventing the
clearing bank from making the restructured payments, sent
shockwaves through the international insolvency community.
Argentina's are unique circumstances. But this has not
prevented industry bodies, insolvency lawyers and investors
from considering how new issuances and sovereign insolvencies
should be handled.
As IFLR goes to press, it...