Why all this discussion?
Pirate has defaulted. Tygrr.bond-p is worthless, and holders take the loss, end of story.
An uninsured pass-through will pass through losses, just as it did dividends.
As you are well aware, there is still plenty of speculation that Pirate might pay, pay in part, or be successfully sued for part or all of his debts. "Default" does not mean the story ends.