Michael Jacobs, Senior Counsel in Locke Lord’s London office, was quoted in an IFLR article on the scrutiny of Russia’s debt markets and whether coupon payments will be paid or if there will be a default on their international bonds.
“These bonds are a day-to-day or milestone-by-milestone waiting game for investors,” he said. “People are focusing on whether payments are being received by creditors when they are due and, if not, why this is happening and what, if anything is going to be done instead.”
Jacobs went on to discuss the three options investors have, including litigation. However, he noted that “there is a pari passu clause in some of Russia’s sovereign bonds which is unusual in sovereign debt. Because of this, you could have holdout creditors block any restructuring, as was the case with certain creditors of Argentinian debt.”
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