Per www.globalinsolvency.com:
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.
Tue., January 8, 2013
