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Toward a Statutory Approach to Sovereign Debt Restructuring: Lessons From Corporate Bankruptcy Practice Around the World
Author:
Mr. Patrick Bolton null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2003: Issue 013
Language:
English
Publication Date:
01 Jan 2003
DOI:
https://doi.org/10.5089/9781451843026.001
ISBN:
9781451843026
ISSN:
1018-5941
Pages:
37
Keywords:
WP; debtor country; floating charge; absolute priority; bankruptcy court; debt crisis; restructuring procedure; Bankruptcy; sovereign dept; unsecured debt; going-concern value; liquidated firm; Sovereign debt restructuring; Debt restructuring; Corporate insolvency; Bonds; Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper provides an overview of key elements of Corporate Bankruptcy Codes and Practice around the world that are relevant to the debate on Sovereign Debt Restructuring. It highlights four components common to most bankruptcy reorganization institutions: a stay on debt collection efforts to prevent a costly run for the assets, broad enforcement of absolute priority, majority voting among creditors on the proposed reorganization plan, and new higher priority financing to keep the firm going while its liabilities are restructured. The paper argues that these components ought to be present in any sovereign debt restructuring procedure.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund