It's too early to tell what the situation is. The company is...

It's too early to tell what the situation is. The company is still trading and management is still in place under the administrators. Voluntary administration allows the company to continue running - it gives debt holders increased visibility of what is happening and allows management some breathing space to sell the business or organise new capital - the later seems unlikely. They had $60M in net tangible assets at the last report - this easily covers the accounting loss from increasing provisions. If they wind the company up and let the loan book run down, a lot of this asset will be realised - not all - the shareholders will feel the loss before the simple corporate bonds lose any capital. This cheers up the shorters - you can see they are already celebrating, but no reason for the bondholders to be glum.