"I've never heard any claims that the 41 billion will just disappear."

What do you think default means?

It has happened before, most recently with Argentina in 2002, and with Russia in 1998, which triggered the LTCM crisis.

"The worst I've heard is that they will restructure the loans to extend pay back dates."

That is just default in everything but name.

The reason the so-called seven year Vienna plan has so much resistance is that ECB members know they'll never get paid back.