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A comment on Bed Bath and Beyond Files for Bankruptcy. Parent comment

Re:Bed Bath and Beyond Files for Bankruptcy by mech987987 on Tuesday April 25, 2023 @12:28PM (#35702719)
When a company liquidates, bondholders are paid out before stockholders. This is to prevent moral hazard from companies going deep into debt and running off with the cash by liquidating the company.
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Re:Bed Bath and Beyond Files for Bankruptcy by etothepii on Tuesday April 25, 2023 @04:44PM (#35706513)
This is not always true and depends on the structure and terms of the bond. For example in the credit suisse takeover several classes of bond were wiped out while some classes of shares were not.
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