[Retric]

Defaulting is actually harder.

Right now Grease gets more new loans / year than they pay out in interest payments. So their debt keeps growing until their next default / restructuring. It’s a vicious cycle.

On the other hand if they defaulted and did not need to make interest payments, but could not make new loans their cash flow would be worse off. But, they would have a reasonable path to long term prosperity by simply keeping their books balanced.

Of course there is always the 3rd option of defaulting and then trying to make new loans and default again. But their already getting free money from the EU so there is little point in doing this now.