PT - JOURNAL ARTICLE AU - Emil Arca TI - How to Think About Bankruptcy Risk in Cross-Border Future Flow Transactions After the Avianca Case AID - 10.3905/jsf.2005.470599 DP - 2005 Jan 31 TA - The Journal of Structured Finance PG - 55--64 VI - 10 IP - 4 4099 - https://pm-research.com/content/10/4/55.short 4100 - https://pm-research.com/content/10/4/55.full AB - Companies and banks in emerging markets have become regular sponsors of securitizations of future flows of their receivables. As the primary goal of these transactions is to mitigate sovereign rather than originator credit risk, they differ in certain respects from securitizations of fixed or revolving pools of assets typically found in the U.S. and other developed country markets. The impact of these differences in a bankruptcy sometimes is not well understood. This article explores these issues in light of the recent bankruptcy proceedings of a sponsor of one of these transactions, the Colombian airline Avianca, and concludes that they must assessed on a case-by-case basis.