Senegal’s Proposed Sovereign Debt Restructuring Will Warrant Innovation

Orrick counsel Thomas Wyatt Laryea contributes to Octus’ Expert Views about how Senegal’s proposed sovereign debt restructuring will test the current restructuring architecture – and what it means for future restructurings. 

Thomas presents ideas for reconsidering the application of the doctrine of comparability of treatment (a principle that makes sense among government creditors), and for mitigating the information asymmetries between different creditor groups. 

If Senegal’s debt restructuring participants are serious about overcoming the challenges that have “frustrated the progress of the restructuring process” to the detriment of debtor countries and creditors alike, “then all parties need to think and act outside the box,” Thomas says.