If this question is in reference to the hung loans I mentioned in my previous post, there won't be a need to; at least on those. This is small portion of overall bank business and banks are in much better shape than over a decade ago.

So who actually loses money in the end?

Edit: Or is this one of the outliers and most of the other times all the participants make money?

Pension funds will be getting beat up by a lot of these.

For instance, 24 hour fitness is on the verge of failing, and it's owned by a pension fund in Canada.

https://www.24hourfitness.com/company/press_room/press_relea...

"24 Hour Fitness USA, Inc. announced that AEA Investors, a leader in the private equity industry; Ontario Teachers’ Pension Plan, Canada's largest single-profession pension plan – and one of the world’s largest; and Fitness Capital Partners, a fund organized by Dean Bradley Osborne and Global Leisure Partners have completed their acquisition of the Company from Forstmann Little & Co."