Bankruptcy stock question
11-11-2008, 12:44 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Jul 2007
Posts: 575
Bankruptcy stock question
Hey all,
I have searched through the forums and internet and can't quite find an answer. One of my non-airline stocks recently entered bankruptcy and I'm wondering if anyone has held stock in a company that emerged from bankruptcy (Delta, Northwest, United, U.S. Airways, etc.). Did you have the ability to convert old shares into new ones or receive any payment whatsoever? Everything I've read/ heard indicates total loss when shares are voided.
Thanks in advance
I have searched through the forums and internet and can't quite find an answer. One of my non-airline stocks recently entered bankruptcy and I'm wondering if anyone has held stock in a company that emerged from bankruptcy (Delta, Northwest, United, U.S. Airways, etc.). Did you have the ability to convert old shares into new ones or receive any payment whatsoever? Everything I've read/ heard indicates total loss when shares are voided.
Thanks in advance
11-11-2008, 01:27 PM
#2
Line Holder
Joined APC: Jun 2006
Posts: 49
Unfortunately you are out of luck if a company goes under you are unable to claim any stock if the company emerges from bankruptcy 9 out of 10 times they have a different stock ticker and is a filed under a different SEC file sorry.
11-12-2008, 08:43 AM
#4
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,047
It can happen, but it would be pennies on the dollar. Usually there are enough secured creditors in line ahead of the stockholders so that nothing is left for them.
11-12-2008, 10:38 AM
#5
Libertarian Resistance
Joined APC: Feb 2007
Position: 757 FO
Posts: 1,057
Hey all,
I have searched through the forums and internet and can't quite find an answer. One of my non-airline stocks recently entered bankruptcy and I'm wondering if anyone has held stock in a company that emerged from bankruptcy (Delta, Northwest, United, U.S. Airways, etc.). Did you have the ability to convert old shares into new ones or receive any payment whatsoever? Everything I've read/ heard indicates total loss when shares are voided.
Thanks in advance
I have searched through the forums and internet and can't quite find an answer. One of my non-airline stocks recently entered bankruptcy and I'm wondering if anyone has held stock in a company that emerged from bankruptcy (Delta, Northwest, United, U.S. Airways, etc.). Did you have the ability to convert old shares into new ones or receive any payment whatsoever? Everything I've read/ heard indicates total loss when shares are voided.
Thanks in advance
Sorry I can't add any info to answer your question. I was curious though, it sounds from your post as if you hold individual stocks. Might I ask, what is your investment philosophy?
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