BioRestorative Therapies Inc (BRTX)

[trader59]

That’s not how it works. The creditors’ interests are also protected in a bankruptcy, and the debt comes first. The creditors might have agreed to restructure the loans to make the payments easier, but this company is not proposing to do that, they’re proposing to liquidate their assets. The only way that shareholders get anything from such an arrangement is if all the debt gets paid. Shareholders would then get the leftovers.

In this case, there will be no leftovers. Given the financial status of the company, the creditors only option other than getting a partial payment from the proceeds is to take custody of the assets and/or company, take ownership of it. If they take that route, shareholders will also be wiped out.