On paper before the bankruptcy process happens. There is often a restructuring, assuming the business can become a going concern again.

Shareholders have no priority and the only hope for shareholders to recover anything would be through government intervention (e.g. American International Group). The value in Evergrande was entirely in its financial engineering capabilities and not in its construction expertise. The loss of confidence means that the financial side of the business has zero value now and nobody would be give them new money today even if excess liabilities magically disappeared and the construction side is severely impaired as there is little demand for new apartments.

Restructuring doesn’t create money out of thin air. If the bondholders aren’t paid off in full, there’s nothing left for equity.