Bankrupt stocks and continuing symbols?

Discussion in 'Stocks' started by bob2007, Oct 25, 2021.

  1. bob2007

    bob2007

    I'm a bit confused when i look at LKNCY.

    I thought the company was bankrupt.
    But it seesm to show a low of 0.95 and now at $15 .

    Is it possible for a stock to be bankrupt wiping out ALL shareholders legally... and the symbol remains for the reorganized shareholders (former bondholders)?
    And then remain a ticker on an exchange?
     
    murray t turtle likes this.
  2. qwerty11

    qwerty11

    Maybe in China BK works differently?
     
  3. %%
    SURE is;
    DAL + GM went bankrupt+ still same symbol. But AMR went bankrupt + changed its symbol...............................................................................................
     
    bob2007 likes this.
  4. jharmon

    jharmon

    All that announcing bankruptcy does is stop your creditors from being paid and give time to negotiate/raise capital/liquidate etc.

    Tickers can be reused - happens all the time.

    Holdings in a ticker on date X don't imply you still have a holding in that security on date Y, or that the legal entity is even the same company.
     
    george_the_second and bob2007 like this.
  5. bob2007

    bob2007

    Could there be an instance... however...

    Where the chart continues the symbol and prices of the same ticker?

    CASE 1: i.e. GM was bankrupt in 2008. Same ticker is in 2010 IPO. But the chart no longer shows prices pre 2010... there is no controversy or ambiguity .

    CASE 2. hypothetically... could you have GM show prices pre 2010 even thought it was bankrupt before 2010?
     
  6. jharmon

    jharmon

    I don't understand your question.

    GM went bankrupt. Traded as GMGMQ on Pink sheets for a while then traded as MTLQQ until it died in 2011.
    The new GM has nothing to do with the old one, as far as your shareholding is concerned.

    If you bought GM in 2006, you now have nothing.

    There are a handful of companies that do emerge from bankruptcy where the original shareholders receive a portion of the reorganized company - probably a couple dozen of companies that have ever done this, and really you wouldn't want to be holding that garbage.
     
    Nobert likes this.
  7. bob2007

    bob2007

    This is what i'm referring to.
    So long as the old prices don't merge with the new prices and ticker. No ambiguity.
     
  8. jharmon

    jharmon

    No, this is wrong.

    Companies reorg quite frequently - some go through a bankruptcy process as part of this.

    Of course they should continue the price time series if your holding continues in some form therefafter - and the prices should be adjusted according to your holding adjustment as part of the reorg.

    Here's one that did:
    PKDC (it's currently OTC, but did get a NYSE listing back after it emerged)
    https://investors.parkerdrilling.co...-successfully-completes-restructuring-process

    There was an effective reverse split of 1:69.1 ex date Mar 26 2019.