
Clauses & Controversies
Ep 126 ft. Mitu & Mark
Feb 5, 2024
Mitu and Mark discuss the recent debt restructuring by Tierra del Fuego, highlighting coercive tactics like rewarding early consent. They speculate on broader patterns and potential conspiracy theories. The podcast also delves into ethical considerations in financial transactions and the treatment of bondholders in exchange offers.
29:12
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Quick takeaways
- Debt restructuring deals may introduce coercive tactics like varying consent timelines to pressure creditors into unfavorable agreements.
- The lack of legal clarity on coercive practices in debt restructurings raises concerns about potential predatory behavior among creditor groups.
Deep dives
The Use of Different Consent Timelines in Debt Restructuring
In this podcast episode, the hosts discuss the emerging trend of using varying consent timelines in debt restructuring deals. They highlight a recent example, the pterodofuigo exchange offer, as a prelude to potentially more aggressive techniques. The exchange offer involved offering different payment terms based on the speed of consent, putting pressure on slow institutions to agree to unfavorable deals. The hosts discuss the potential violation of the equal treatment provision and its implications for future debt restructurings.
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