Not sure why you are so confused. There is a pecking order in...

Not sure why you are so confused. There is a pecking order in the assets. In these situations note holders get paid first and any leftovers get paid to shareholders. This is also reflected in the fact noteholders tend to get a much lower return at a much lower risk than shareholders that, under normal circumstances, benefit from capital gains but at a much higher risk.

If this isn't understood, then one shouldn't be investing.

Disclosure: I wasn't holding either companies but have bought into PLS yesterday as I see this as a great deal for them.