NEW YORK -- Legislation under consideration in New York state stands to rattle sovereign debt workouts by requiring private creditors take the same losses the U.S. government would as a sovereign creditor instead of holding out for a better deal.
Proponents of the bill say it would simplify a process that often gets bogged down in lengthy legal battles, help developing countries get over immense debt burdens and curtail so-called vulture funds that seek to profit off the process.
