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To bring the debt crisis to an end, the European governments will ultimately have to deal with the solvency problem, which will involve further restructurings and write-offs.
It was not only insufficiently deep for economic recovery, but it also led to a change in the composition of debt -- from private creditors to official creditors -- making further restructurings more difficult.
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Although bondholders who held out in other recent sovereign restructurings did win further concessions, the options for those who refused Argentina's terms are few.
I do doubt that the country will succeed without resorting to more radical policy measures, such as bigger doses of fiscal stimulus, further interest-rate cuts, corporate-debt restructurings, and a significant devaluation of the currency.
Organizational restructuring: When done correctly, restructurings can significantly extend your runway.
"We will likely see a wave of bankruptcies and restructurings when the interest coverage ratio drops further," said Xia Le, chief economist for Asia at Banco Bilbao Vizcaya Argentaria SA in Hong Kong.
Recent restructurings and LBOs, with their heavy debt burdens, further exaggerate the short-term performance pressures.
Prior sovereign debt restructurings provide considerable guidance for how such a restructuring might be shaped.
Financing corporate restructurings.
"You've got lower wages from restructurings.
Q Are you doing many debt restructurings?
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