What would a Collective Action clause achieve? Let’s say they institute a 75% agreement clause, so that if at least 75% of the holders of anyindividual bond issue, agree to the terms, then all bondholders are forced to accept the new terms. Will adding a Collective Action Clause make investors agree to the changes? I don’t see why that would happen. If you didn’t agree to the plan being proposed by Greece now, why would you agree to the plan if all they have done is institute a Collective Action Clause. You wouldn’t, so you would still have the same group of holdouts. What happens if a bond doesn’t get 75% agreement? Then those that agree get the new bonds, and those that don’t agree keep the old bonds. Same as now. But if it is the same as now, why bother? Maybe they need to make it 50% agreement? Or 10%? In any case, there may be individual bonds that don’t meet the Collective Action threshold. For those bonds, it is exactly the same as it is now – except that the government changed the rules retroactively and jammed it down your throats (but more on that later). What happens if 80% of the holders of a particular bond agree? Then all bondholders are subject to the agreement. Well, guess what, that is a Credit Event!