Some go so far as to say that if a bond is insured and bondholders receive back the par value, no default has taken place, just an unscheduled call.

FORBES: Even If A Bond Doesn't Default, You Can Still Lose Your Money

Casden's representative has said the properties will be brought out of default once the dispute is resolved, but given the lawsuit, Forbes is discounting the value of these properties.

FORBES: Alan Casden