Government LMTs?

Will the past decade of establishing a precedent for liability management transactions give governments alternative solutions for managing debt? The way creditors approach bankruptcy and covenants has changed drastically but has anything similar happened for government restructurings.

While this might not apply to “safe” countries like the US, could an Apollo/KKR sponsor a double dip or non-pro rata uptier for a smaller country facing liquidity issues? It wouldn’t fix underlying issues but is this viable short term solution? Guessing it would work best when economic turnaround is more certain and the governments access to capital market is blocked by negative debt covenants.

Rebuttal: the automatic stay and access to dip financing may be too attractive for a government to avoid, especially if LTM leads to continued uncertainty. Could anyone speak on how they’ve seen governments shift restructuring strategies or any room you see for new solutions?