This Chapter discusses the process of restructuring a sovereign’s debt once this step becomes unavoidable. All sovereign debt workouts are painful – for the debtor country, its citizens, its creditors and its official sector sponsors. If mishandled, a sovereign debt workout can be incandescently painful. A mangled debt restructuring can perpetuate the sense of crisis for years, sometimes even for decades. A return to normal economic activity may be delayed, credit market access frozen, trade finance unavailable, capital flight endemic, financial sector instability chronic and foreign direct investment withered. Adding to this inherent difficulty, sovereign debt crises rarely come in isolation. They are often the cause of, or are caused by, or at the very least are accompanied by, political crises, banking crises, social crises.