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53 Emory L.J. 869 (2004)
The Pari Passu Clause in Sovereign Debt Instruments

handle is hein.journals/emlj53 and id is 881 raw text is: THE PARI PASSU CLAUSE IN SOVEREIGN DEBT INSTRUMENTS' Lee C. Buchheit* Jeremiah S. Pam** INTRODUCTION ................................................................................................ 871 I. THE CLAUSE ......................................................................................... 871 A. The Text ........................................................................................ 871 B. The Context .................................................................................. 872 C. The Sovereign Debt Enigma ......................................................... 874 II. THE RATABLE PAYMENT INTERPRETATION ......................................... 877 A. Tom, Dick, and Harry in Brussels ................................................ 877 B. Implications .................................................................................. 880 C. Proliferation ................................................................................. 880 D. Criticisms ..................................................................................... 883 III. THE HUNT FOR PARI PASSU .................................................................. 891 A. Preferences and Priorities ........................................................... 892 B. The Pari Passu Odyssey ................................................................ 894 1. Nineteenth and Early Twentieth Centuries: Pai Passu in Secured Credits ........................................................ 894 2. Mid-Twentieth Century: Negative Pledge in Unsecured Credits ............................................................. 897 3. Late Twentieth Century: Pari Passu and Negative Pledge in Unsecured Credits ................................................. 900 Cleary, Gottlieb, Steen & Hamilton acted as counsel to the Republic of Peru in the appeal of the Brussels action referred to in note 16 of this Article, and is acting as counsel to the Republic of Nicaragua in the action referred to in note 29 and to the Republic of Argentina in the actions referred to in notes 126-33. A great many individuals have helped the authors in their hunt for pari passu over the last few years. Among these are: Luis de Carlos Bertrdn, Frank G. Dawson, T. H. Donaldson, Marc Ellenbogen, G. Mitu Gulati, Andrew Haldane, Catherine Hovaguimian, G. Hartwell Hylton, William Ledward, Robert P. McDonald, G. Alfred Mudge, Charles E. Olson, John Orbell, Hugh S. Pigott, Ekaterina Y. Pischalnikova, Armando L. Suratos, Michael R. Tomz, and Andrew Yianni. The authors also are grateful to the library of the Bank of England, the ING Barings Archives, and the microfiche section of the Harvard Law Library for their generous assistance in our research. The views expressed in this Article are those of the authors and should not be ascribed to Cleary, Gottlieb, Steen & Hamilton or its clients. * Partner, Cleary, Gottlieb, Steen & Hamilton (New York). ** Associate, Cleary, Gottlieb, Steen & Hamilton (New York).

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