Quote:
Originally Posted by dippin
Yes.
Outstanding stock at the time a company files for chapter 11 can be canceled.
Delta canceled its outstanding stock when it filed for chapter 11 bankruptcy, so those stocks are worthless, but stock sold since then isn't.
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Good information, thanks.
What factors determine whether a stock is canceled or not? Does it vary on a case by case basis, depending on the bankruptcy ruling and procedure, or could there be indicators that might indicate a company being more likely to have its stock canceled than not if it does in fact enter the bankruptcy process?