This chapter explores the history and significance of collective action clauses (CACs) in bond restructuring, from their introduction in English law bonds to their resurrection in sovereign bonds. It discusses their purpose in preventing maverick bondholders from forcing liquidation and highlights their weakness in operating within a single series of bonds. The chapter also examines the concept of uniformly applicable offers and their importance in achieving inter-creditor equity.
The Americas Core Credit team at Reorg takes a look back at the past week and previews what's to come in the week ahead, and LatAm team lead Kyle Owusu has a discussion on Argentina and Venezuela with sovereign restructuring veteran Lee Buchheit.
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