The Banks have TWO quite separate relationships with ABC...

The Banks have TWO quite separate relationships with ABC Learning - as they do with most companies.

Firstly, they are LENDERS to the companies. Secondly, they are shareholders.

It is only LOANS that the banks have made, that rank ahead of shareholders. To the extent that the banks (or more usually, their wealth management arms (e.g. MLC)) hold shares in the company, they are in the exact same boat that we are in.

Overall of course, they are likely to see SOME money back, (from the loans), whereas retail shareholders (who haven't made loans on top of their s/holding) are likely to see nothing. Shareholders are always dead last when it comes to divvying up the remains.

Hope you haven't lost too much.