Showing posts with label chapter 11. Show all posts
Showing posts with label chapter 11. Show all posts

Monday, January 7, 2013

Bankruptcy Regime For Nations Urged

Per www.globalinsolvency.com:

Tue., January 8, 2013
 
Argentina’s messy legal battle with hedge funds over its 2001 sovereign default has heightened calls to resurrect plans for a bankruptcy regime for countries, under the auspices of the International Monetary Fund, the Financial Times reported. Many senior lawyers, fund managers and former policy makers say recent court rulings against Argentina highlight the weaknesses of the current approach to government debt workouts, and argue that it is time to revisit the “sovereign debt restructuring mechanism” proposed by the IMF in 2002. The SDRM, envisaged as a kind of voluntary Chapter 11 for countries, never took off after US opposition. The initiative has received renewed interest since the eurozone debt crisis highlighted the weaknesses of the current ad hoc, contractual approach to sovereign debt restructurings.