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Over the past 50 years, the Latin American and Caribbean region has faced numerous sovereign debt crises, with at least 50 instances of sovereign debt restructurings. The COVID-19 pandemic exacerbated existing economic challenges, leading several countries to seek comprehensive debt restructuring. Notably, Argentina restructured approximately $65 billion of external debt owed to private creditors, while Ecuador restructured $17.4 billion of external private debt. Additionally, over ten Argentine provinces collectively restructured more than $10 billion of external private debt, including the Province of Buenos Aires, which restructured $7.1 billion. The absence of a sovereign bankruptcy regime necessitated ad hoc negotiations between sovereigns and their creditors. The restructuring processes during 2020 and 2021 highlighted the importance of well-organized creditor committees, which facilitated constructive dialogue and helped achieve consensual restructuring deals. For instance, Ecuador successfully negotiated a comprehensive restructuring agreement with its bondholder committee in September 2020, achieving a 98% creditor participation rate. This was made possible through good-faith negotiations and the strategic use of contractual mechanisms to mitigate holdout risks. The restructuring solutions developed during this period have created a new paradigm for sovereign debt restructurings, emphasizing the need for targeted negotiations and the involvement of organized creditor groups. These innovations not only provided substantial debt relief to sovereign debtors but also preserved value for investors, minimizing the risk of prolonged litigation. The experience of these restructurings suggests that future sovereign debt crises may benefit from the lessons learned during the COVID-19 era, fostering a more orderly and consensual approach to debt resolution in Latin America and beyond.