Comment by: Anonymous. Posted 11 years ago [2013-02-14 09:48:55]

I agree with the comment above. It is not a restructuring. There is no change to the principal amount of the notes. They have just been forcibly taken from their owners. There is more a case that this is bankruptcy under 4.2(f) since the government has sacked the current management. Or you wait for a failure to pay at the next coupon. But restructuring? Not by my reading of the definitions.

Comment by: Anonymous. Posted 11 years ago [2013-02-14 00:26:11]

I'm not a lawyer, so that gives me license to make up a legal opinion. I would have called this a "constructive" Credit Event (to borrow a legal term). I see the SNS Reaal expropriation as a Failure to Pay after the cure period lapses rather than a Restructuring. While the Reference Entity may actually make the P&I payments to the gov't as new owner of the sub debt, it is nonetheless a failure to pay.