The insolvent state: analyzing organized procedures for restructuring the bankrupt sovereign

The purpose of this Article is to examine the impetus behind the movement for a sovereign bankruptcy procedure. The intention is to look at what has (and has not) been said on this issue and evaluate the soundness of various proposals. Part II of this Article looks at the background of international debt crises and the underlying discussions that have taken place on this issue in the international arena. Part III looks at more recent thinking on the subject, sheds light on Argentina's catastrophic global debt crises, and discusses the statutory and market‐oriented solutions for sovereign debt crises. Part IV concludes that the way forward, for now, is to include majority action provision in bond contracts while encouraging responsible internal governance for sovereigns. Such an approach is beneficial until the international market revisits an overarching proposal. Copyright © 2007 John Wiley & Sons, Ltd.