Elizabeth Dahill ’12 was awarded the International Insolvency Studies Bronze Award from The International Insolvency Institute (III) for her paper “As Greece Goes, So Goes the E.U.: Defending Europe with a Sovereign Debt Restructuring Framework.” Dahill served as the managing editor of the Brooklyn Journal of International Law, and in the fall she will join Seyfarth Shaw LLP in its Real Estate group.
The International Insolvency Institute is a nonprofit organization dedicated to advancing and promoting insolvency as a respected discipline in the international field. Its primary objectives include improving international cooperation in the insolvency area and achieving greater coordination among nations in multinational business reorganizations and restructurings.
Dahill’s paper focuses on the sovereign debt crisis in Europe, and specifically on the ad hoc response to Greece’s financial crisis. As a potential response to this crisis, Dahill proposes that Europe create a sovereign debt restructuring mechanism. “An international insolvency mechanism is not a new concept, but this paper takes a new angle by adapting earlier, internationally-focused restructuring mechanisms to address the particular problems faced by the EuroZone countries,” she said.
The prior proposals include the International Monetary Fund’s Sovereign Debt Restructuring Mechanism (“SDRM”), and the use of Collective Action Clauses (“CAC”) in sovereign bond issuances. The SDRM was removed from consideration in 2003, and CACs have never been used to implement a full-scale restructuring. Therefore, a sovereign nation, such as Greece does not have a formal tool for restructuring debt and coordinating with creditors. In her paper, Dahill argues that a viable foundation has already been created by the SDRM and CACs to frame a new restructuring mechanism. Additionally, she believes that building on this foundation to create the European Sovereign Debt Restructure Mechanism would help stabilize individual European economies and ensure the continued success of the European Union.
Dahill, wrote the paper as part of Professor Edward Janger’s Advanced Bankruptcy and Commercial Law Colloquium, and was encouraged by Janger to submit it to the III Competition. “I am very thankful to Professor Janger for his support and guidance,” said Dahill. “It is an honor for me to have my work recognized by the International Insolvency Institute.”
Awards will be presented this summer at the Annual III Conference in Paris. The conference will cover reports and analyses of the most important current international insolvency issues by leading speakers from around the world.