Pay - in - kind bonds (which allow issuers the option of paying bondholders interest in additional securities or cash) are excluded. (proshares.com)
According to Griesa (uniquely), this means that if any creditor or vulture fund refuses to participate in a debt writedown, no such agreement can be reached and the sovereign government can not pay any bondholders anywhere in the world, regardless of what foreign jurisdiction the bonds were issued under. (michael-hudson.com)
Pay - in - kind bonds allow the issuer the option of paying the bondholder interest either in additional securities or in cash. (investinginbonds.com)