What happens when a companies gets taken over by a debt recovery/ bank/ loan provider

[engineer]

@engineer

And the outcomes depend on what sort of end-game packages they agree on - the company, financial and legal advisers, creditors, courts, etc should agree on. Sometimes, some stubborn equity holders remain with smaller shares. Most of the time they should get wiped out.

@Noobieofshares there’s an on-going case that you may find interesting to monitor. NMC Health went under recently after Muddy Waters published a report (the fund must’ve been short too).

https://www.bloomberg.com/news/articles/2020-04-12/nmc-creditors-said-forming-committee-for-6-6-billion-debt-talks?srnd=premium-europe

Previously:

https://www.bloomberg.com/news/articles/2020-04-09/nmc-enters-administration-in-london-after-giving-in-to-creditors

https://www.bloomberg.com/news/articles/2020-04-05/dubai-islamic-bank-noor-bank-exposure-to-nmc-at-541-million

https://www.bloomberg.com/news/articles/2020-04-04/nmc-health-chairman-asks-for-creditor-patience-after-fraud-found

https://www.bloomberg.com/news/articles/2020-04-03/nmc-convertible-bondholders-tap-pjt-ahead-of-debt-restructuring

https://www.bloomberg.com/news/articles/2020-03-31/nmc-lenders-start-to-tally-losses-as-trading-unit-goes-on-block

https://www.bloomberg.com/news/articles/2020-03-31/finablr-s-exchange-business-said-to-default-on-300-million-loan

Also see this thread:

NMC Health - NMC

NMC share price falling after the Muddy Waters revelations.