1. Seminar SOVEREIGN STATE INSOLVENCY November 2008 by Philip R Wood Special Global Counsel, Allen & Overy LLP Visiting Professor in International Financial Law, University of Oxford Yorke Distinguished Visiting Fellow, University of Cambridge Visiting Professor, Queen Mary College, University of London Visiting Professor, London School of Economics & Political Science

2. BK:9977802 Wreck of Medusa

3. BK:9977802 What is state insolvency? Historical background  Early history: wars, kings and more wars  The 19th century serial disasters  The 20th century: three disasters  The 21st century - the big one  Who's next?

4. BK:9977802 53. Map: State insolvency 1980-2005

5. BK:9977802 56. Map: Bank insolvencies 1980-2002

6. BK:9977802 Comparison with corporate bankruptcies (1)  Realisation  Management  Freeze on creditor actions  Dissenting creditors  Disclosure

7. BK:9977802 Comparison with corporate bankruptcies (2)  Preferences  Security  Priorities  Discharge

8. BK:9977802 Comparison with corporate bankruptcies (3)  Delinquencies  Currency  Interest  Set-off  Debt/equity conversions

9. BK:9977802 Protections to insolvent states  Local assets inviolable  Monetary sovereignty  Legislative sovereignty  IMF Agreement art VIII, s 2(b)  Sovereign immunity  Insulation of state entities

10. BK:9977802 Rescheduling ladder of priorities 1.Supra-national creditors/trade debt/interbank debt./ small creditors 2.Government debt/public bond issues/commercial banks 3.Non-accepting creditors

11. BK:9977802 Architecture  IMF  Paris Club  London Club  Bondholder committees

12. BK:9977802 Rescheduling practice: key points  Banks (reschedule or exchange)  Bonds (exchange)  Central bank  Rescheduled debt: short-leash  Debt reconciliation  Most favoured debt clause  Collective action clauses  Exit consents (Ecuador 1999)

13. BK:9977802 Finally IMF sovereign debt restructuring mechanism Conclusions

14. BK:9977802 Venus in shell