In finance, a holdout problem occurs when a bond issuer is in default or nears default, and launches an exchange offer in an attempt to restructure debt held by existing bond holders. Such exchange offers typically require the consent of holders of some minimum portion of the total outstanding debt, often in excess of 90%, because, unless the terms of the bond provide otherwise, non-consenting bondholders will retain their legal right to demand repayment of their bonds at par. Bondholders who withhold their consent and retain their right to seek the full repayment of original bonds, may disrupt the restructuring process, creating a situation known as the holdout problem.
The Foreign Sovereign Immunities Act of 1976 (FSIA) is a United States law, codified at Title 28, §§ 1330, 1332, 1391(f), 1441(d), and 1602–1611 of the United States Code, that established criteria as to whether a foreign sovereign nation is immune from the jurisdiction of U.S. courts—federal or state. The Act also establishes specific procedures for service of process, attachment of property and execution of judgment in proceedings against a foreign state. The FSIA provides the exclusive basis and means to bring a civil suit against a foreign sovereign in the United States. It was signed into law by United States President Gerald Ford on October 21, 1976.
The Nonintercourse Act is the collective name given to six statutes passed by the United States Congress in 1790, 1793, 1796, 1799, 1802, and 1834 to set Amerindian boundaries of reservations. The various acts were also intended to regulate commerce between settlers and the natives. The most notable provisions of the act regulate the inalienability of aboriginal title in the United States, a continuing source of litigation for almost 200 years. The prohibition on purchases of Indian lands without the approval of the federal government has its origins in the Royal Proclamation of 1763 and the Confederation Congress Proclamation of 1783.
Cleary Gottlieb Steen & Hamilton LLP is an American multinational law firm headquartered at One Liberty Plaza in New York City. Known as a white shoe law firm, Cleary employs over 1,200 lawyers worldwide.
Distressed securities are securities over companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy. As far as debt securities, this is called distressed debt. Purchasing or holding such distressed-debt creates significant risk due to the possibility that bankruptcy may render such securities worthless.
A vulture fund is a hedge fund, private-equity fund or distressed debt fund, that invests in debt considered to be very weak or in default, known as distressed securities. Investors in the fund profit by buying debt at a discounted price on a secondary market and then using numerous methods to subsequently sell the debt for a larger amount than the purchasing price. Debtors include companies, countries, and individuals.
The Argentine debt restructuring is a process of debt restructuring by Argentina that began on January 14, 2005, and allowed it to resume payment on 76% of the US$82 billion in sovereign bonds that defaulted in 2001 at the depth of the worst economic crisis in the nation's history. A second debt restructuring in 2010 brought the percentage of bonds under some form of repayment to 93%, though ongoing disputes with holdouts remained. Bondholders who participated in the restructuring settled for repayments of around 30% of face value and deferred payment terms, and began to be paid punctually; the value of their nearly worthless bonds also began to rise. The remaining 7% of bondholders were later repaid 25% less than they were demanding, after centre-right and US-aligned leader Mauricio Macri came to power in 2015.
Diane Schwerm Sykes is an American jurist and lawyer who serves as the chief judge of the U.S. Court of Appeals for the Seventh Circuit. She served as a justice of the Wisconsin Supreme Court from 1999 to 2004.
Thomas Poole Griesa was a United States district judge of the United States District Court for the Southern District of New York from 1972 to 2017 and its Chief Judge from 1993 to 2000.
In United States law, the federal government as well as state and tribal governments generally enjoy sovereign immunity, also known as governmental immunity, from lawsuits. Local governments in most jurisdictions enjoy immunity from some forms of suit, particularly in tort. The Foreign Sovereign Immunities Act provides foreign governments, including state-owned companies, with a related form of immunity—state immunity—that shields them from lawsuits except in relation to certain actions relating to commercial activity in the United States. The principle of sovereign immunity in US law was inherited from the English common law legal maxim rex non potest peccare, meaning "the king can do no wrong." In some situations, sovereign immunity may be waived by law.
City of Sherrill v. Oneida Indian Nation of New York, 544 U.S. 197 (2005), was a Supreme Court of the United States case in which the Court held that repurchase of traditional tribal lands 200 years later did not restore tribal sovereignty to that land. Justice Ruth Bader Ginsburg wrote the majority opinion.
The Columbia Journal of Transnational Law is a law review edited and published by students at Columbia Law School. The journal publishes scholarly articles and student notes on issues of transnational law.
United States v. Bormes, 568 U.S. 6 (2012), is a decision by the Supreme Court of the United States holding that the Little Tucker Act, which provides jurisdiction to federal courts for certain claims brought against the federal government, does not apply to lawsuits brought under the Fair Credit Reporting Act (FCRA).
Jubilee USA Network is a nonprofit financial reform organization based in Washington D.C. Jubilee USA's work began in conjunction with the global Jubilee 2000 movement, founded in the late 1990s to advocate for debt relief for developing countries. It is "an alliance of more than 75 U.S. organizations, 650 faith communities and 50 Jubilee global partners."
Bank Markazi v. Peterson, 578 U.S. 212 (2016), was a United States Supreme Court case that found that a law which only applied to a specific case, identified by docket number, and eliminated all of the defenses one party had raised does not violate the separation of powers in the United States Constitution between the legislative (Congress) and judicial branches of government. The plaintiffs, in the case had initially obtained judgments against Iran for its role in supporting state-sponsored terrorism, particularly the 1983 Beirut barracks bombings and 1996 Khobar Towers bombing, and sought execution against a bank account in New York held, through European intermediaries, on behalf of Bank Markazi, the Central Bank of the Islamic Republic of Iran. The plaintiffs obtained court orders preventing the transfer of funds from the account in 2008 and initiated their lawsuit in 2010. Bank Markazi raised several defenses, including that the account was not an asset of the bank, but rather an asset of its European intermediary, under both New York state property law and §201(a) of the Terrorism Risk Insurance Act. In response to concerns that existing laws were insufficient for the account to be used to settle the judgments, Congress added an amendment to a 2012 bill, codified after enactment as 22 U.S.C. § 8772, that identified the pending lawsuit by docket number, applied only to the assets in the identified case, and effectively abrogated every legal basis available to Bank Markazi to prevent the plaintiffs from executing their claims against the account. Bank Markazi then argued that § 8772 was an unconstitutional breach of the separation of power between the legislative and judicial branches of government, because it effectively directed a particular result in a single case without changing the generally applicable law. The United States District Court for the Southern District of New York and, on appeal, the United States Court of Appeals for the Second Circuit both upheld the constitutionality of § 8772 and cleared the way for the plaintiffs to execute their judgments against the account, which held about $1.75 billion in cash.
Republic of Sudan v. Harrison, 587 U.S. ___ (2019), was a United States Supreme Court case from the October 2018 term. The Court held that civil service of a lawsuit against the government of Sudan was invalid because the civil complaints and summons had been sent to the Embassy of Sudan in Washington, D.C. rather than to the Sudanese Foreign Minister in Khartoum.
Jam v. International Finance Corp., 586 U.S. ___ (2019), was a United States Supreme Court case from the October 2018 term. The Supreme Court ruled that international organizations, such as the World Bank Group's financing arm, the International Finance Corporation, can be sued in US federal courts for conduct arising from their commercial activities. It specifically held that international organizations shared the same sovereign immunity as foreign governments. This was a reversal from existing jurisprudence, which held that international organizations had near-absolute immunity from lawsuits under the Foreign Sovereign Immunities Act and the International Organizations Immunities Act.
Republic of Philippines v. Pimentel, 553 U.S. 851 (2008), is a decision of the Supreme Court of the United States which clarified the Federal Rules of Civil Procedure as regards money damages sought by a foreign government, the Republic of the Philippines, via its Presidential Commission on Good Government (PCGG). The case stemmed out of disputes surrounding one of the overseas investments and bank accounts of Ferdinand Marcos, Arelma S.A.. Marcos was President of the Philippines until being overthrown in the People Power Revolution.
Opati v. Republic of Sudan, 590 U.S. ___ (2020), was a United States Supreme Court case involving the Foreign Sovereign Immunities Act with its 2008 amendments, whether plaintiffs in federal lawsuits against foreign countries may seek punitive damages for cause of actions prior to enactment of the amended law, with the specific case dealing with victims and their families from the 1998 United States embassy bombings. The Court ruled unanimously in May 2020 that punitive damages can be sought from foreign nations in such cases for preenactment conduct.
Acree v. Republic of Iraq, 370 F.3d 41, was a case before the United States Court of Appeals for the District of Columbia. U.S. military personnel who had been tortured by Iraq during the 1991 Gulf War sued for damages, arguing that the Foreign Sovereign Immunities Act (FSIA) made state sponsors of terror liable. Iraq never contested the lawsuit, but the U.S. federal government intervened. The Court of Appeals ultimately decided against the plaintiffs, saying that the FSIA did not create new causes of action against foreign states. The U.S. Supreme Court declined to hear the plaintiffs' appeal.
