Looks like we are actually going to burn some of the bondholders. The Anglo Irish liquidation will result in an "event of default" and the senior bonds are covered under the FF ELG guarantee to be paid in full but the remaining subordinated bondholders are not covered under the ELG and are about lose their entire investment at around €200m. IBRC tried to buy them out at a 80% discount but the bondholders refused and took legal action to recover the entire investment.
This will space will be interesting to watch. I take it these are the New York, London and Luxembourg based hedge funds they are talking about.