Last updated: 29 July 2016
Swiber filed for bankruptcy.
Now what, for shareholders, and even bondholders?
Are you going to get anything back?
There is a hierarchy of claims. It can be simplified to this:
1.Secured Debt Holders (assets are collaterized for the loans)
2.Unsecured Debt Holders (IOU without any assets collaterized)
3.Shareholders
In such bankruptcy cases, bondholders should be in a better position than shareholders to make a claim. But it isn’t necessarily so if the Company does not have enough assets to distribute. Hence, bondholders can still be left with nothing.
The disclaimer is that I am not a corporate lawyer and the purpose of this article is a curious pursuit to figure out if bondholders and shareholders are likely to get their capital back. It is not, in any way, to be regarded as a document to prove your claims, nor to be treated as an advice.
