« New State Exemption Survey | Main | Bankruptcy and Rent Control »

I'll See Your Pari Passu and Raise You Absolute Priority!

posted by Anna Gelpern

As a special treat for the Imperial China Bond of 1898Argentina-Is-Unique contingent, Mitu Gulati shows the way to get rich quick off recent developments in sovereign debt litigation. Bring him your tattered, your fading, your just-bought-on-eBay bonds that matured a century ago, and he will guide you to a happy retirement via the latest doctrinal shifts in sovereign immunity, statute of limitations, and intercreditor equity.

His example is especially attractive because it involves more than a promise of equal treatment, but a promise of absolute priority by the Chinese Imperial Government. If you had bought this baby, you'd be first in line. No Latin mumbo jumbo to hide behind, just a straight up problem of sovereign payment prioritization, familiar by now to all ye debt ceiling geeks (see Chapter 6).

Ah, sovereign debt -- irresistable, unenforceable, immortal.

Comments

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad