> When a company goes into administration the assets are sold to pay out those who hold equity in the company. They're literally owed debt. This is incorrect.

> When a company goes into administration the assets are sold to pay out those who hold equity in the company. They're literally owed debt. This is incorrect. Please see the differences between equity and debt. [1] [1] http://smallbusiness.findlaw.com/business-finances/debt-vs-equity-advantages-and-disadvantages.html http://smallbusiness.findlaw.com/business-finances/debt-vs-e...