International Debt Workouts (LAW-795DB-001)
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This course is a simulation of a cross border debt restructuring. Along with the rapid growth of international trade in financial services, cross border lending has grown exponentially in recent decades, as well as the need to restructure some of that debt. These financial restructurings or "workouts" are amongst the fastest growing components of cross border financial transactions.
The simulation involves the out-of-court debt restructuring or "workout" of a corporation in distress. The simulation requires the class to be members of the restructuring and insolvency practice of an international law firm. Our client will be an international commercial bank with a troubled loan to a company in an emerging economy. Our work will include conducting due diligence, recommending a legal strategy, coordinating the creditor group, establishing negotiation strategies for our client, structuring the transaction documents, and closing the deal.
The objectives of this simulation are to help students (1) understand the legal framework governing cross border insolvency and restructuring, (2) debate legal issues affecting cross border debt restructurings, (3) grasp the principles and best practices of international debt restructurings and insolvency from a practical perspective, (4) develop legal risk analysis and problem solving skills in the context of a troubled international financial transaction, and (5) gain experience with relevant document structuring and cross border negotiation strategies.
Evaluations will be done by short reaction papers in groups and by individual class participation and team participation in the simulation. There will be no exams.
Textbooks and Other Materials
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First Class Readings
Please refer to the syllabus
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