Argentina’s sovereign bond restructuring in 2005 reopened the debate surrounding interpretations of the boilerplate clause

The pari passu fallacy had a deceptive appeal. It posited that a standard contractual provision, the pari passu clause, promising that a debt would rank equally with the borrower's other senior indebtedness, must also imply an obligation on the part of the borrower to pay all equally-ranking debt ratably (the ratable payment interpretation). After a life span of 18 years, it appears that the pari passu fallacy is at last being laid to rest....