Sovereign debt renegotiation agreements have generalized the practice of package restructuring – a form of debt relief combining rescheduling and write-off. The paper provides a contingent claims model with an expression for sovereign debt value and a bargaining game that rationalizes package restructurings as optimal renegotiation deals. It further shows how the parameters of the restructuring deal can be inferred from market information. A maximum likelihood inference from EMBI spread series is applied to four countries yielding realistic renegotiation outcomes. This is joint work with Amavi Hounlete, PhD student at HEC Montreal.