Clauses & Controversies

Explore the fierce rivalry in sovereign debt law between England and New York, where lawyers trade barbs over jurisdiction. Discover how issuers are now able to switch governing laws midstream in response to questionable New York legislation. Delve into the complexities of sovereign bond restructuring with fascinating insights on Suriname and Sri Lanka, and unpack the implications of innovative restructuring models. With humor and sharp commentary, the hosts tackle the evolving landscape of contract law and investor rights.

Nate Oman, an expert in international finance and contract law, sheds light on Venezuela's tumultuous financial landscape. He dissects the ongoing execution sale of PDVSA's US asset and the fierce creditor battles surrounding it. The conversation dives into the nuanced difference between execution sales and receiverships. Oman also explores the historical mechanisms of equity receiverships and their modern implications, while drawing intriguing parallels to past bankruptcy cases, all while keeping it engaging and insightful.

In this lively conversation, Mitu, a legal expert delving into a complex case, and Mark, who adds depth with his insights, tackle the bizarre happenings surrounding Hamilton Bank's accusations of fraud. They explore the outrageous claims of a $50 million deposit and dissect the murky legal landscape of bondholder rights. The duo humorously critiques an enigmatic amicus brief while also questioning the obscure motivations of involved parties. Throughout, they mix expert analysis with light-hearted banter, making complex legalities both intriguing and entertaining.

Theo Maret, an astute observer in the sovereign debt landscape, offers deep insights into Zambia's tumultuous debt restructuring. He discusses the conflicts among creditor groups and what fueled their unreasonable demands. Maret sheds light on the complexities of the G20 Common Framework post-COVID-19 and the challenges of intercreditor agreements. He also explores the influence of state-owned banks and the intricacies of domestic debt management in emerging markets, providing essential lessons for future debt negotiations.

Mitu, an expert in legal rules and cases, and Mark, a fellow legal enthusiast, dive into the whimsical world of champerty, a quirky legal doctrine. They explore a recent case involving PDVSA bonds, delving into the ethical implications of litigation finance and the challenges bondholders face. With humor, they analyze the formation of a secretive Panamanian corporation and the absurdities of sovereign debt. Their lively banter exposes the complexities of legal maneuvers and questions the relevance of champerty in today’s legal landscape.

Zohra Ahmed, an academic at Boston University Law School, dives deep into Pakistan’s recurring battle with IMF bailouts, revealing how these are linked to U.S. military interests. She theorizes that the true cost of these bailouts is a detrimental cycle of dependency and a lack of genuine economic reform. The conversation touches on Pakistan's political dysfunction, the intricate dance of international consent, and the pressing need for a rethink of IMF practices in a changing geopolitical landscape.

A Better Way to Freeze (and Seize?) Russian Assets? Ever since Russia invaded Ukraine in 2022, there has been talk of what international law doctrines might be utilized to induce Russia to back off. One of those doctrines that has been whispered about is now, thanks to a wonderful new article by our guest, international law guru and Yale Law professor, Oona Hathaway, is that of Countermeasures. Oona and her co authors not only explain the law of countermeasures, but argue that these legal principles naturally extend into a doctrine of “collective countermeasures”. We ask Oona about these doctrines and their scope, particularly in the context of Russia and Ukraine. She argues that the doctrine, properly understood and applied, is (and should be) narrow. To quote Spider Man (maybe), “With Great Power Comes Great Responsibility”. Producer: Leanna Doty

Randle DeFalco, a legal expert from Widener University Law School, dives into the intricate history of Cambodia's debts to the US stemming from controversial loans in the 1970s. He explores the moral dilemmas surrounding these debts, especially given the US's role in supporting a dubious government during a tumultuous period. The conversation examines colonialism's lingering effects, Cambodia's struggles for sovereignty amid coups, and the implications of repaying loans tied to violations of international law. This complex narrative raises essential questions about justice and historical grievances.

In this discussion, Joseph Cotterill, a Financial Times expert, delves into Ukraine's ambitious debt restructuring deal amid ongoing conflict, addressing the unrealistic IMF projections and bondholder dynamics. He explains the complexities of including state-owned enterprise debts like Ukrenergo and the urgency behind restoring investor confidence. The conversation also touches on Mozambique's contentious tuna bonds saga, including a recent High Court ruling that awarded significant damages and the ramifications of corruption and legal battles on the country's financial landscape.

Andrew Wilkinson, an expert in sovereign debt restructurings, discusses the risks of liability in creditor complaints, the use of tortious interference with contract in the Zambia debt restructuring, and the importance of fair treatment for all stakeholders in restructuring deals. He shares insights on the complexities of navigating bankruptcy law, managing creditor negotiations, and achieving successful outcomes in financial restructurings.