The Achilles' Heel Of Restructuring Greece

Law360, New York (April 12, 2012, 8:17 PM EDT) -- Terms restructuring Greece’s 206 billion euros of sovereign debt, which faced likely and imminent default, were formally approved by the necessary two-thirds majority of bondholders on March 9. What now?

First, let’s quickly review how the restructuring — which seemed practically impossible, albeit politically imperative, just a few months ago — came about. The original bonds were, for the most part, governed by Greek law and contained terms requiring unanimous approval for changes in bondholder rights.

The restructuring terms involved the exchange of the outstanding bonds...
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