The Financial Times quotes Eric LeCompte on the necessity and support of the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). Read an excerpt below, or the full article here.

Investors brace for new law on sovereign debt workouts

by Jonathan Wheatley

A law close to approval in the state of New York would force commercial creditors including bondholders to give the same relief as lender governments when developing countries restructure sovereign debts. Its backers say it would streamline debt workouts — agreements between lenders and borrowers to renegotiate terms following a default — that have dragged on for months or years in countries such as Zambia and Sri Lanka. It would also stop “holdout” or “vulture” creditors from bringing protracted lawsuits to get a better deal than other lenders.

Its backers say it would streamline debt workouts — agreements between lenders and borrowers to renegotiate terms following a default — that have dragged on for months or years in countries such as Zambia and Sri Lanka.

It would also stop “holdout” or “vulture” creditors from bringing protracted lawsuits to get a better deal than other lenders.

 

 

Read the full article here.