Sovereign and private sector debt defaults are of all times. Every country has its own legal rules to respond to indebtedness. Next to the classic court actions and preliminary measures, there are also a multiple of debt restructuring procedures to avoid liquidation of productive concerns. The East Asian, Russian or Argentine crises have clearly shown that massive, system wide corporate debt distress situations could find an effective policy response through the use of out-of-court, private workout solutions among lenders and debtors. For sovereigns, reconciliation processes have been put into place and could solve a large part of a State’s foreign debt. But not all debts can be resolved in an elegant way and far too many times a creditor needs to resort to basic litigation and freezing actions.
By using national and international legal procedures it is possible to collect claims in a time and cost efficient way. The European Payment Order system allows creditors to obtain an enforceable entitlement within a reasonable short time and at a low cost. Only in case the debtor challenges the Order within 30 days after the receipt, the creditor will need to go to Court.
A Sovereign debt is a debt instrument guaranteed by a government. When a national economy starts to default, due to different reasons (low oil prices, armed conflicts, embargos etc.) debts are not being paid anymore and solutions must be sought. As such a Sovereign debt market exists. Claim holders will start looking for payment, but the process is lengthy and expensive. ORTUZ is able to guide you amongst the different options a Claimholder has at its disposal.