Bankruptcies

I would assume the shareholders either won't get anything or would get a tiny portion just to make them go away. But looking at the capital structure, I can't see how they realistically expect to get anything considering bond holders won't be made whole for awhile, if at all.


Thanks for clarifying on the second lien, I hadn't been able to dig into it very far. Seems there might be a potential play here. Unless equity holders screw it up, the vote is very soon on the proposed plan.
 
It's basically the tug of war between debt holders and equity. Equity tries to put forward a case that there is more value in the business than the debt holders say. And there is a case for that. In 2014 they had a large write down of their equipment, about 4 bln worth, and you could argue that that was excessive.
If that's the case they should've gotten some stock in the new company. But they might be a bit late in the whole process....
 
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