Evolution of Collective Action Clauses in Bond Restructuring

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.