Shorting a stock that goes belly up?

[ROE]

what happen to the stock you borrow and short on some company
and that company now goes belly up..how do you repay the share ?
does your lender written it off and you dont have to pay back and thanks
for the money

 

[awg]

good question.

i rang commsec, and asked them a similar question a fair while ago. ( re trading halt)

took them ages to give me an answer, but unfortunately I cant remember exactly what it was.

the outcome was favourable to the investor, is all i can recall, re my inquiry