Many countries have designed national insolvency regimes for corporations that
not only wind up hopelessly bankrupt entities, but also seek to salvage firms that
with reduced debts can survive as going concerns. The objective in the latter cases,
as with insolvent sub-sovereign entities or households (which cannot be “wound
up”), is to give a second chance, a “fresh start”, and a “clean slate.” The ad hoc,
partial, and at best loosely coordinated system for addressing sovereign debt
crises does not deliver such outcomes.15