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correct me if I am wrong.
The only way for current equity not going to 0 is that the company will repay all its secured and unsecured liabilities in 100%. Otherwise, it will go to 0.
It means that if the current creditors does not wish to roll over their lending to the company, some other company must come in and offer the balance, or it can earn enough to pay it off(then the question will be why other creditors will permit such thing to happen).
IMO, the equity should go to 0 in most cases.
The only way for current equity not going to 0 is that the company will repay all its secured and unsecured liabilities in 100%. Otherwise, it will go to 0.
It means that if the current creditors does not wish to roll over their lending to the company, some other company must come in and offer the balance, or it can earn enough to pay it off(then the question will be why other creditors will permit such thing to happen).
IMO, the equity should go to 0 in most cases.