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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.


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