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Latin America

Paolo123

(297 posts)

2. The basic problem is the lack on an international bankruptcy court

Reply to Judi Lynn (Original post)

Mon Sep 1, 2014, 12:53 PM

Sep 2014

In the US if a company needed to restructure it's debts and 93% of the creditors (the figure in the Argentina case) agreed and 7% didn't the company could go to the bankruptcy courts and get the restructuring forced on the other 7%.

There is no such process on international debt. The IMF has been charged with trying to set one up but so far has not really done anything. The last time the world asked the US to work on such a system the Bush Administration shot it down.

The problem is that in my opinion Elliot is legally correct on this issue - which is why we need an international bankruptcy court.

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Highlight:

A Short History of Vultures [View all] Judi Lynn Sep 2014 OP

Interesting 3rdwaydem Sep 2014 #1

The basic problem is the lack on an international bankruptcy court Paolo123 Sep 2014 #2