NY A07786

Creates the "Sovereign Debt Stability Act" allowing foreign nations, territories, and subnational governments (excluding U.S. municipalities) to voluntarily file petitions in New York to restructure unsustainable debt governed by New York law

Establishes an independent monitor appointed by the governor (in consultation with U.S. Treasury) to facilitate debt restructuring negotiations, maintain creditor lists, verify claims, and supervise voting on restructuring plans

Requires debt restructuring plans to be approved by creditors holding at least two-thirds in amount and more than one-half in number of claims in each class before becoming binding on all creditors in that class

Limits recovery on certain claims to amounts that comport with international burden-sharing standards and caps recovery at what the U.S. federal government would have received under applicable international debt relief initiatives

Applies retroactively and prospectively to sovereign nation debt, overriding inconsistent contractual provisions, while allowing creditors not otherwise covered to voluntarily opt into the framework