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It absolutely depends on the terms of the BK, and in some regards the terms of the particular bond (not all bonds have a direct claim to assets, or all assets,many are subordinated to other things and many are involved with a certain aspect of the business).

In a C-11 business BK, it is not uncommon for the bondholders to end up with much of their recovery being in owning the stock of the revamped company...and how that fares is like any other stock and business venture. Vendors may also end up with an assorted type of payout...from pennies on the $ to everything....... Its reasonable to say that bondholders fare better than stockholders.

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17y ago

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