Once it emerges from default, the ratings on the defaulted bonds would be lifted, too.
But, in practice the group members often contribute the defaulted amount with an intention to collect the money from the defaulted member at a later time.
"Argentina makes no real argument that, to avoid defaulting on its other debt, it cannot afford to service the defaulted debt".
Some of the defaulted loans were obscure and fiddly.
Orbit requires the permission of LIC to sell units, and any sales must go toward the defaulted loan.
They gave short shrift to the holders of the defaulted debt a stance some in Athens might envy.
In fact Mr. Gottlieb was never personally responsible for the defaulted loan and remains in full control of his company.
The funds sued in the US courts for full repayment of the defaulted Argentinian bonds they still hold.
Next, an auction has to be held of the defaulted bonds to set a price at which the swaps will pay out.
This would accept a write-off of 35% in the nominal value of the defaulted debt, but Argentina would have to honour overdue interest.
Mr. Yadav predicted that Orbit would be able to repay the defaulted loan within seven months, while acknowledging that the company faced a tough market for selling apartments.
