Bowen Coal (BCB)

Hi Glenn,

BCB shares have been in suspense since mid-July with the company having appointed voluntary administrators. It doesn’t look good for shareholders:

• In insolvency scenarios like this, distribution of funds occurs in a strict hierarchy. Secured creditors (e.g., lenders) and administrators’ fees are paid first, followed by employee entitlements and unsecured creditors.
• There’s a high likelihood that ordinary investors will receive little to no distribution unless the company’s assets generate significant surplus,  an uncommon outcome in such cases.