Was thinking to do the post in the morning but had enough evidence to share it now.
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee resolved unanimously that a Restructuring Credit Event has occurred with respect to The Hellenic Republic (Greece).

The EMEA DC resolved that a Restructuring Credit Event has occurred under Section 4.7(a) of the ISDA 2003 Credit Derivatives Definitions (as amended by the July 2009 Supplement) following the exercise by The Hellenic Republic of collective action clauses to amend the terms of Greek law governed bonds issued by The Hellenic Republic such that the right of all holders of the Affected Bonds to receive payments has been reduced. The details are available on ISDA website .

It means there will be a net $3.2bn pay-out on CDS contracts, according to the data warehouse Depository Trust & Clearing Corp, in a boost for the relatively new market in sovereign debt protection that could also benefit euro zone debt markets amid worries that a failure to trigger could have undermined an important hedging instrument for holding government bonds. ( source FT)

I am wondering some bondholders, after procrastinations, got paid more than the others, which is not fair. However, such arrangements are private and confidential. But if the Greek did it so, they must have been due to pay more than expected. So, IMF/EU’s cashflow projection for Greece should be slightly modified again, which the Greek would not care much.