Oct. 14, 2020
Short answer, they won't start trading again and you'll get very little or no money back.
First SARS gets paid, then staff and debt holders and if anything is left shareholders will receive a few cents.
Now here's the thing. The company may survive and start trading again. Certainly, Comair and Phumelela look set to continue operations, but with new shareholders.
This is very much part of the business rescue process, the rescue part is about turning debt in equity and also new capital taking new equity. Existing shareholders get left carrying nothing.
Now, sure this sounds way harsh, but this is how investing works. We buy a business and we get all the rewards, reward that is unlimited in how big is can be. But if things hit the wall, we're last in line. So our downside is limited at 100% loss, but the upside is unlimited.
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