"perhaps when it becomes clear to all parties that the first...

"perhaps when it becomes clear to all parties that the first repayment will not be met?"

However, the hedge funds will be on the blower now to the other lending parties.

When all see the repayments cant be met, it will justify the need for a restructure, at which point the banks have chance to sell out, if they so wish, hedge then has chance to buy more debt cheaply and restructure more debt to suit them.

If banks stay in, they will benefit from the increased interest rates on their funds but longer terms.

What can also happen at that point, is the banks sell out to the hedge but at a higher rate than 38c, maybe 60c, as the restructure reduces the risk for the hedge, they have control, and will pay more for the same debt.