the bond holders come first, actually everyone comes before the common shareholders,
bond holders, secured debt from banks ect, preferred shareholders, if there is any,
for the most part common shareholders get zero, or close to it, bond holders will have to take a haircut, and they do not like to share.
the debt will be paid off, as much as possible, and the company will be restructured in some cases. the bond holders will trade a percentage of their debt for ownership ie. new shares of the company.
wiping out the previous shareholders.
in some cases common shareholders get a small amount, every case is different but in general zero to not much.
thanks
selkirk
