General Market Question
if the company filed for chapter 11 what is the chance of the stock coming out of it with value???
Asked by craftmatic1086 in
General Market
7 months ago
Stocks referenced: DSUP
Answers
989 points
rvilmur answered 7 months ago …
In general, stocks that go Chapter 11 return little or no value to current shareholders when coming out of bankruptcy. Shareholders are last in line so the bondholders and banks will be paid off first, sometimes in a partial cash settlement with new stock issued to these creditors. Current shareholders if given anything at all get a huge reverse split of the old shares into new shares resulting in a severe dilution of the old stockholders in favor of the new creditors turned into stockholders.
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