Clifford Chance
New ICMA sovereign collective action and pari passu clauses
6 October 2014
ICMA's new model aggregated collective action clauses and pari passu clause for sovereign issuers offer flexibility to sovereigns wishing to restructure their debts while at the same time providing robust protection to noteholders through the procedures and majorities required in order to restructure those debts. The clauses will not solve immediately all the problems in sovereign debt restructuring, but they are a significant step in the right direction. The approach taken by ICMA's new CACs has the support of the IMF.
