The details of the write-down of Greek debt are set, or at least set conditionally, it will be very interesting to watch how the markets respond. On the details, this figure sets out the timeline and how market/debt-holder participation influences the process.
After all this time and European money, a flat out default is still quite possible. And it is also interesting to note that the structure has not solved the free-rider problem or the CDS problem. Some debt holders may not accept the terms of the restructuring in the hope that others will be restructured and they will be paid in full. This problem may bring the whole structure crashing down. Some investors may have debt which is written down by more than appropriate for its term (e.g. long-term debt holders taking very severe write-downs or short term debt holders taking even modest write-downs). The CDS problem is that insurance creates moral hazard. The decision-maker for any given debt instrument may not have an interest in maximizing the payoff of the debt and may instead prefer full default or a differently structured write-down (or even be over-insured and benefit from a complete default).