Depending on how WF is collateralized on their loans and if there are significant personal assets of the owners who signed personal gurantees they will probably come out ok on a 1st lien position as the primary creditor. Having worked in special credit and collections for various large regional banks collections are not always as straight forward as what a person would like and can be quite painful all the way around. Typically the banks that are taking equipment as collateral especially specialty equipment like in the gun business that equipment is appraised and then discounted to get the collateral value typically the value is not 1 for 1.
The downside to all of this of course is that in a liquidation situation banks will rarely receive even the discounted value because some specialty equipment will be lucky to get fifty cents on the dollar.
