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Thanks, Ira, that's extremely helpful. I think it's worth clarifying a factual point. Did the issuer exercise a right to defer interest payment on the trust securities rather than to pay it currently as due in one or more periods, as permitted under the indenture, or did it simply default?

If it elected to capitalize per a permitted right exercisable under the terms of the instrument, the trust securities become subject to the OID rules; but if F. simply defaulted, that wouldn't change the way the holder accrues interest (and wouldn't let F. start accruing OID either).
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