The Legal Weeds of Sri Lanka's International Bonds

The Sri Lankan debt crisis has deepened to the point that a restructuring seems inevitable, although the government still doesn't seem willing to acknowledge this. What effect will the legal terms of the country's international bonds have on the shape of a restructuring? The contracts include a mixture of older and newer CACs (with aggregation features) and one of the stranger "limitations on liens" provisions we have seen. Andres de la Cruz (formerly of Cleary Gottlieb) has worked on some of the most complicated sovereign debt restructurings in recent decades (Greece, Argentina, Uruguay, among others). He joins us to discuss the nuances of Sri Lanka's sovereign bonds. Prepare to enter the weeds.

Producer: Leanna Doty