in india, we had one type of instruments called secured debentures. this was one of the biggest frauds of modern india.
theoretically, the debentures were secured against some XYZ property of the company, but, the type of bas**rds that the company promoters we have, never paid back secured debentures if they did not want to. there would be some theoretical trustees for the instruments and they would charge a fee , but would do nothing.
i have never heard of anyone getting money of their secured debentures back if the company went into default.
