You are correct. Unsecured debt is trading at 8 cents on the dollar. Common shares are worthless if MCP files Chapter 11.
I agree that the government would rather let MCP go under save it. They will likely let MCP file for Chapter 11. The mine will still be in the U.S. just under different owners.
Having said that, I doubt that Chapter 11 can be avoided and equity will be wiped out. JMO
This company is clearly a loser both short and long term.
Then the price will snap back to the mid 60's JMO
I'm looking to put a few bucks on this company, but it looks very risky indeed.