Both routes can be right; they differ in profile. Enforcement targets full recovery at the cost of time and uncertainty. Settlement targets certainty today at a price below nominal. The decision is individual.
Time
Enforcement is measured in years rather than months, especially where the issuer does not cooperate or court proceedings are involved.
Settlement happens within a horizon known in advance and written into the contract.
Costs and who bears them
In enforcement the holder normally bears the costs regardless of the outcome: legal representation, court fees, expert opinions.
In a settlement the holder does not bear subsequent enforcement costs; they pass to the acquirer of the claim.
Degree of certainty
The outcome of enforcement cannot be guaranteed in advance. A settlement rests on a known amount and a known date.
The difference between the two is precisely the price of removing uncertainty.
Holder involvement
Enforcement requires ongoing cooperation, additional documents and decisions over time.
After settlement the holder exits the case. For some holders that is the main reason to choose this route.
Comparing the two routes is meaningful over actual documentation; only there does the real difference in time and cost become visible.
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.