Well, don't know if they're "famous" but Boart Longyear...

Well, don't know if they're "famous" but Boart Longyear (ASX:BLY) 5 years ago was trading at $3.85 and today are trading at $0.04 having traded at $0.12 earlier this year.

Stop me if any of this sounds familiar...
After losing a huge chunk of shareholder money and running up over $600M in debt to private equity and hedge funds (Centrebridge, Ascribe,...) they engaged Moelis Capital (https://hotcopper.com.au/posts/19776149/single) to advise them on recapitalisation.

BLY announced a debt-for-equity based recapitalisation on 3rd April this year, swapping 98% of the company (which had a then market-cap of ~$50M and SP of 6c) in exchange for some of the debt, leaving their existing shareholders with just 2% of the company. (https://hotcopper.com.au/posts/23806125/single)

BLY's debt-for-equity deal is being done at $0.02 with an offer to existing shareholders to buy some additional shares in a limited cap raising. As you might expect, the share price has been slowly falling since the announcement towards the 2c price-point as the recap date (June 2017) approaches.

And if you check out their HotCopper boards you will find the last of their "true believers" saying things like:
"Looks like this one heading towards $1 after trump infrastructure plans...." - https://hotcopper.com.au/posts/20562908/single

"EBIDTA and cash numbers more compelling. Once some top line comes back this will fly IMO." - https://hotcopper.com.au/posts/20682908/single

"HAPPY to take a position at such a price debt substantially relaxed... Relax guys" - https://hotcopper.com.au/posts/23810577/single


As Mark Twain would say...
"History doesn't repeat itself, but it often rhymes."

Links included to all sources.

You should do your own research before making any investment decisions regarding anything you read on the internet.