The way I understand it, they need 90% voluntary participation. If they reach 66 3/4% they can enact the collective action clause which can force those private bond holders who don't go along voluntarily to take a haircut. It was widely expected that use of the collective action clause would be deemed a credit event and trigger the CDS market on those bonds. This could cause a disorderly default.

Bottom line is the ISDA holds all the cards and they are run by the big banks who hold 95% of all CDS contracts so who do you think they will favour in their unregulated, behind the curtain decision making forum....not the bond holders!

It aint over till its over...over there.

DC14