What Happens to the Stock Holders When a Company Goes Chapter 11?
August 13, 2009 by Bankruptcy and Debt Settlement Tips
Filed under More Bankruptcy Answers
Can you answer SVOMAN’s question about Bankruptcy?:
What happens to the stock owners holdings when a company like GM goes chapter 11 bankrupt?
do you think that’s what going to happen to General Motors?
How To File Personal Bankruptcy
What happens to the stock owners holdings when a company like GM goes chapter 11 bankrupt?
do you think that’s what going to happen to General Motors?
How To File Personal Bankruptcy
Bankruptcy Feedback: They still own stock - but now they own stock in a company that can’t pay its creditors.
Usually, if they can’t emerge from bankruptcy, the company will disolve and the shares become worthless.
Bankruptcy Feedback: They hit the pavement from floor 11.
Bankruptcy Feedback: Chapter 11 is “reorganization” and only a few ever recover from that. Even in Chap.11 most wipe out the common stock.
Almost all companies go chapter 11 first then most go Chapter 7, liquidation, and in chapter 7 you can assume the common shares are worthless.
Bankruptcy Feedback: Stockholders generally loose, they are the last in line. If all creditors are paid off then stockholders get what remains. Highly unlikely to get anything.