"...So they get nothing form their initial investment from the...

"...So they get nothing form their initial investment from the DOCA..."

Is it new in the market that someone lose their shirts?

How much did the shareholders of MBN before the first DOCA? How much did the creditors have lost their cumulative interests of the debts MBN owns to them?

How much is 10% interest of $10million? A year losing $5m dollar? OK. 2 year losing $10m? What if the creditors could not see when they could get some profit or worse they couldn't believe the profit would be bigger enough for what they would lose?

Sometimes damage has been done and monetarily/psychologically you need to sell and accept the loss. Who like loss? In the market you have to brace the loss when you try to get your profit for your asset as a whole. The creditors should know it, which is the 101 in the debt market.