Does China Have to Pay Qing Dynasty Bonds?
China’s last imperial dynasty, the Qing, fell in 1912. But some bondholders have not given up trying to collect on bonds issued as long ago as 1898. The latest attempt claims that the People’s Republic of China (PRC) violated priority clauses in these old bonds when it issued dollar-denominated bonds in 2020 and 2021, some…
Continue ReadingThe Billion-Dollar Determination of Foreign Law Question
The ongoing litigation in New York relating to the validity of certain notes issued by Venezuela’s state-owned oil company has received extensive coverage here at TLB. In 2022, I explained that the case presented a billion-dollar choice-of-law question. That choice-of-law question was answered in 2024 when the New York Court of Appeals held the validity…
Continue ReadingAn Answer to the Billion-Dollar Choice-of-Law Question
On February 20, 2024, the New York Court of Appeals handed down its opinion in Petróleos de Venezuela S.A. v. MUFG Union Bank, N.A. The issue presented—which I described in a previous post as the billion-dollar choice-of-law question—was whether a court sitting in New York should apply the law of New York or the law…
Continue ReadingLitigating a Russian Bond Default
The Russian invasion of Ukraine, and the sanctions imposed in response by the United States and other governments, have fueled expectations of a Russian sovereign debt default. Despite the Russian government’s recent coupon payments on two dollar bonds and apparent desire to avoid default, prices remain in deeply distressed territory. As often happens in such…
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