Link copied to
clipboard
*The story has been updated with corrected details about the Gascoyne Resources recapitalisation process
This week, debt-laden lithium producer Altura Mining (ASX:AJM) went into voluntary administration.
When it comes to recovering any money, Alturas shareholders are at the bottom of the heap. Secured creditors, like banks, are at the top.
The key message is that shareholders are often the last in the queue, says Quentin Olde, senior managing director at global insolvency and restructuring firm Ankura.
If there is insufficient money to repay the creditors, then the shares in that company, at a simplified level, no longer hold value.
As part of any proposal to restructure and recapitalise the company call…
Read the full article at: https://stockhead.com.au/news/explainer-what-happens-to-my-shares-when-a-company-goes-bust/
