Rock Center | Restructuring Sovereign Debt in the 21st Century

The Stanford Rock Center hosted a discussion on sovereign debt restructuring with two leading experts in the field: Lee C. Buchheit and Benjamin Hébert.

Mr. Buchheit described where the law stands after the New York courts’ interpretation of the pari passu clause in NML Capital v. Argentina. He also outlined the contractual provisions introduced in sovereign bond documentation in response to this ruling, as well as potential restructuring strategies that sovereigns could use in the future to successfully restructure their debts.

GSB Professor Hébert discussed his research, conducted with his HBS colleague Jesse Schreger, that estimates the causal effect of sovereign default on the equity returns of Argentine firms.