Ep 71 ft. Mitu & Mark

Sri Lanka, SriLankan Airlines, and... SriLankan Airlines used to be profitable, and one of us remembers it fondly. But those days are over, and the airline will need to restructure its debt. Will its bonds be easier or harder to restructure than Sri Lanka's sovereign bonds? Because Sri Lanka guaranteed the airline's bonds, one might assume the two types of bonds--airline and sovereign--would have similar legal terms and restructuring mechanisms. But that is not the case. A number of provisions in the airline's bonds could give Sri Lanka's restructuring advisors a headache. Producer: Leanna Doty