Ann: Execution of Deed of Company Arrangement, page-21

I have to say I disagree. Creditors don't have any of the opportunity for gains if the company does well so they should come first in such a scenario. Otherwise securing lines of credit would be next to impossible. Who would give a company credit if they could just as easily buy shares and be in the same position but have opportunity to make gains of company value. It's actually pretty essential that creditors have a reasonable ability to recoup their costs from a failed venture.

There are no 10+ baggers for creditors, only agreed interest and for that lack of potential gain they need to be in a position of decreased risk.