"don't see why they would want 200million worth of debt" – well it could work out that way, but in general it doesn't. Generally with something like this the buyer would buy the assets for an agreed price; let's say $150 million for the sake of argument. There will be some fees and costs, and some priority creditors get paid first out of this amount so let's say $130 million is left over for the unsecured, ordinary creditors. And let's imagine that there is exactly $200 million in loans plus another $50 million owed to contractors. These creditors will then get about 52 cents in the dollar (130 / 250) back. The lenders would get $104 million out of the $200 million lent. The contractors would get $26 million out of the $50 million they invoiced.
Shareholders in this scenario would get nothing and would have no stake in the new company's operations.
(20min delay)