Whether an unpaid bond can be sold is among the most common questions. The general answer: in many cases yes, but not automatically and not at nominal value. The form of the bond, the terms and conditions and the evidential basis decide.
What is actually sold
With distressed issues you rarely sell 'a bond on an exchange'; you transfer a claim against the issuer — the right to be paid principal and possibly coupons.
The legal form of the transfer depends on whether the security is certificated or book-entry and on what the terms say about transfers.
What makes a sale possible
The usual prerequisites.
- a documented existence and amount of the claim
- provable ownership of the bond
- terms that neither exclude nor impossibly condition a transfer
- identification of the issue, ideally including an ISIN
What complicates it
A missing proof of payment, an undocumented earlier transfer, unclear wording of the terms, or ongoing proceedings that change the creditor's position.
Most obstacles can be solved, but they lengthen the review — which is why documents should be prepared in advance.
At what price
Price always reflects the risk and time required to recover the specific claim. Nobody quotes a figure without documents and no rate card exists.
The gap to nominal value is the price of removing uncertainty and transferring the risk of future developments.
If you are considering a sale, prepare the issue identification and your subscription and payment records — without them nothing can be assessed.
This text is general information for bondholders. It is not legal advice and not an investment recommendation. Capital Investing Ventures a.s. is not a law firm. Any individual assessment depends on the specific documentation and circumstances of the case.