Well your default risk is priced into the yield of the bond you issue.

If you've defaulted in the past, your cost of capital will go up in the future.

You can weigh the future effects of renegotiating your debt now, and make a decision.

Iirc GM debt holders took a large haircut in their bond holdings. GM is still a going concern and I'm sure they've issued debt in the last few years after their restructuring.