Sovereign Debt

District Court Stays Debt Litigation Against Sri Lanka at U.S. Request

Hamilton Reserve Bank Ltd. calls itself the “hometown bank of America’s founding father Alexander Hamilton.” In a recent case, however, the bank found itself at odds with the Treasury Department that Alexander Hamilton founded. In Hamilton Reserve Bank Ltd. v. Democratic Socialist Republic of Sri Lanka, the United States filed a statement of interest supporting…

Continue Reading

Using TLB to Teach International Business Transactions

This post continues our series explaining how professors can use resources on TLB to teach various classes. This post discusses International Business Transactions (IBT). Although TLB focuses on litigation and IBT focuses on transactions, there is a great deal of overlap. The most obvious examples are contractual clauses that plan for dispute resolution, like forum…

Continue Reading

The FSIA “Two Step”—Venue in Enforcement Actions Against Foreign States

When a party holding a foreign judgment or arbitral award wants to enforce the judgment or award against assets in the United States, it normally brings an enforcement action in the jurisdiction where the assets are located. But when the judgment debtor is a foreign state, the venue provision of the Foreign Sovereign Immunities Act…

Continue Reading

More on the Validity of the PDVSA 2020 Bonds

Governments with no realistic prospect of paying their debts often gamble for redemption, trying desperately to avoid default. Political leaders, with good reason, fear that a debt default will get them thrown out of office. But in trying to hold power, sometimes by borrowing even more, they often make matters worse for the country and…

Continue Reading

The Billion-Dollar Choice-of-Law Question

Choice-of-law rules can be complex, confusing, and difficult to apply. Nevertheless, they are vitally important. The application of choice-of-law rules can turn a winning case into a losing case (and vice versa). A recent decision in the U.S. Court of Appeals for the Second Circuit, Petróleos de Venezuela S.A. v. MUFG Union Bank, N.A., is…

Continue Reading

New Scholarship on the Argentinian Sovereign Debt Litigation

For more than a decade in the early 00s, Argentina’s $100 billion sovereign debt default dominated the transnational litigation news headlines – and, indeed, global financial news. Hundreds of cases were filed against Argentina in U.S. courts with long-term implications for foreign sovereign immunity and foreign direct investment.   Many of those cases were consolidated before…

Continue Reading

Litigating a Russian Bond Default

Russian 200 ruble note

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…

Continue Reading