Stock Market Question

Andy recently said that loans don't get defaulted, which has me puzzled about something:

When a public company with no majority shareholder goes under due to debt, where does the debt go? Is it doled out to the shareholders according to their % of ownership? Does the game assume it and just pay it out to completion?

I would like to know the answer to that too. I do not know either.

like in real life sometimes banks eat the losses

Vladian Enache: Are you saying that because you know, or because you think?

I'd like to hear Andy weigh in on this.

To test this, I closed two corporations that were public but I had control over. (Neither was profitable anyway.) One had 28B in cash, and 90B in debt.

The other had 9B in cash, and no debt.

I received neither the cash, nor the debt. The in-debted one I was 70% majority shareholder of. (Don't worry, the shares cost 0.07 SC$, it was a cheap experiment.)

It seems that debt and assets of a public corporation simply vanish. I'll be posting a suggestion about this, since that's neither realistic, nor fair given that a plurality shareholder can simply erase people's wealth.