Clauses & Controversies Ep 158 ft. Mitu & Mark
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May 28, 2025 The discussion dives into the aftermath of Russia's default and the implications of prescription clauses on sovereign bonds. Key questions arise about what constitutes a valid claim against Russia and the complexities of making legal requests in international contexts. The speakers tackle the tricky terrain of statutes of limitations and the impact of war on contractual obligations. They also examine the historical perspective of legal frameworks, highlighting investor challenges in navigating payment rights amidst geopolitical unrest.
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Russian Bond Prescription Clause Impact
- Russian bond contracts have a prescription clause voiding claims unmade within three years of due payment.
- This gives Russia an option to refuse payment if investors didn't timely assert claims, despite sanctions.
Making a Claim Is Broader Than Lawsuit
- 'Make a claim' likely doesn't require filing a lawsuit; sending an email or letter may suffice.
- Courts favor communication that notifies intention to assert rights to preserve claims.
Automated Depository Requests as Claims
- Automatic payment reminders by depositories could count as 'making a claim' to preserve bondholder rights.
- Tolerance or informal communications might be insufficient, but automated notices may have legal effect.