Editing Debt restructuring (section)

====Exit consent====
'''Exit consent''' is a formal agreement that allows a majority group of [[creditor]]s holding [[sovereign bond]]s to change the non-financial terms of the bonds in a way that makes the bonds effectively worthless for the minority holdouts, motivating them to accept a [[restructuring]] offer.<ref>{{cite journal |last1=Buchheit |first1=Lee C. |last2=Gulati |first2=G. Mitu |title=Exit consents in sovereign bond exchanges |journal=UCLA Law Review |date=October 2000 |volume=48 |issue=1 |page=59-84 |url=https://heinonline.org/HOL/Page?collection=journals&handle=hein.journals/uclalr48&id=73&men_tab=srchresults}}</ref> Thus creditors willing to restructure can outmaneuver holdouts by using the [[supermajority]] voting features of existing bonds to secure changes, which reduce their value as they are tendered in exchange for restructured debt. [[Government bond]] issued by [[sovereign nation]]s are often perceived as safe investments.  But over time, countries in difficult economic situations have needed to restructure their debt structure, or see their national economy collapse.  During that process, the country must restructure the outstanding debt by offering its old bonds holders new instruments that reflect new financial terms.  It is a process that sees the emergence of holdout creditors who refuse the proposed restructuring, posing a problem to the reorganization process the [[holdout problem]]. Therefore, the threat of an exit consent is used to encourage (or coerce) minority creditors to accept the exchange offer so they are not left with diminished bonds.