I particularly like how they neutrally listed all the assets and lines of credit of Voyager Digital (the loan holder) without mentioning that they add up to just $655M (< $670MM), meaning that they are now insolvent.
I don't think defaulting on a loan means you're going to pay $0.00 on that loan, just that you've missed a payment (plus whatever grace period is given).
Default means that you are or have been technically deemed incapable of making any further payments. This includes repaying the principal outstanding.
You're confusing any potential amount ultimately recoverable in insolvency with some kind of imaginary ex gratia payment by a management of a imaginary going concern which absolutely doesn't exist in Ch.12. Its chapter12 in the circumstances conceived.
> Default means that you are or have been technically deemed incapable of making any further payments
Nope, that's not correct. Loan default occurs when a borrower fails to pay back a debt according to the initial arrangement - it most assuredly does not mean that no further payments will ever come (or be extracted via judgement).
To expand a bit more. At least in the SOPs that I wrote, is a loan declared default if a repayment of (interest and/or principal) has not been received after a certain cutoff (30+, 60+, 90+) or the company has been declared bankrupt, dead, or similar (hard trigger events)
For the latter, this is why petitions like these matter: https://www.reuters.com/business/china-evergrande-faces-wind...