The potential payoff for debt investor activists (or default activists) is too lucrative to ignore and will lead to increased litigation. The Windstream case demonstrates how Aurelius will generate tremendous profits on credit-default swaps after buying Windstream's debt at a discount and forcing into default.
Ugh, nobody looks particularly good in this Windstream case, do they? Windstream Holdings Inc. is a rural telecommunications company that, in 2015, spun off its copper wires and fiber-optic cables into a real-estate investment trust (now called Uniti Group Inc.), and then leased the wires back from the REIT, because that’s how business works now. The problem is that Windstream had issued some bonds, and those bonds had covenants, and the covenants included a specific promise not to do this exact thing.