5:30 – 6:00 pm – Reception
6:00 – 7:00 pm – Event
Room 190, Stanford Law School

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Please join us for a discussion on sovereign debt restructuring by two leading experts in the field. Mr. Buchheit will describe where the law stands after the New York courts’ interpretation of the pari passu clause in NML Capital v. Argentina. He will also outline the contractual provisions introduced in sovereign bond documentation in response to this ruling, as well as potential restructuring strategies that sovereigns could use in the future to successfully restructure their debts.

A forthcoming paper that Mr. Buchheit co-authored with Mitu Gulati (Duke University School of Law) can be found here. He has also written a short comment on this topic.

GSB Professor Hébert will discuss his research, conducted with his HBS colleague Jesse Schreger, estimating the causal effect of sovereign default on the equity returns of Argentine firms. They identified this effect by exploiting changes in the probability of Argentine sovereign default induced by legal rulings in the case of Republic of Argentina v. NML Capital. They found that a 10% increase in the probability of default caused a 6% decline in the value of Argentine equities and a 1% depreciation of a measure of the exchange rate. They examined the channels through which a sovereign default may affect the economy.

Panelists:

	Lee C. Buchheit Partner, Cleary Gottlieb Steen & Hamilton LLP To view Lee C. Buchheit’s full bio, click here.
	Benjamin Hébert Assistant Professor of Finance, Stanford Graduate School of Business To view Benjamin Hébert’s full bio, click here.