Question on what happens is one has stock in or buys into a company that is in bankruptcy? Ual is in bankruptcy - coming out next month or so. What happens to the shares? IF I have some UALAQ then it becomes UAUA do the shares change or what? Thanks and Make 'em pretty, Chris
If the bond holders and other creditors are getting screwed what makes you think your not on the list? Most likely your stock is not transferable, and your SOL.
Don't need to be so harsh - chill alittle... That was not quite the question - I will retry..... I am pondering purchasing some UAL when it comes out of bankruptcy in Feb - UAL is currently trading as UALAQ - or is it?? Are these shares the ones that will be "renamed" to UAUA when it comes out in Feb or will they be complete new issues and not transfered?? If not transferred what then becomes of the shares currently trading as UALAQ?? No I do not currently own any of these shares - this is a learning endevor. Curious as to what happens in these events. Chris
That wasn't meant to be harsh.. its the truth. If you buy them out off bankruptcy off the pink sheets. They can reemerge as the symbol you mentiond and redeem shares of your stock and replace with the new shares. The company can also go a head go completely bankrupt, not just reorganization, and if it does reemerge like you are predicting in that case a whole new class of shares will be issued. Leaving former creditors and even pinksheet investors high and dry. Pink sheets are like lottery tickets. Resarch RCN, RCN.Q history. Good luck.
If all of the current UALAQ shares will hit the round file - what is their purpose in trading?? In even existing?? Are those people that are trading them simply gambling that they will get some of the new shares? Thanks, Chris
Truth thats all I want. I am not predicting anything - there are news reports they are emerging in Feb under the new symbol of UAUA. I understand bankruptcy and disappearing - but my question pertains to those that reemerge and what becomes of the shares traded on the OTCBB - it is not the pink sheets yet. or is it the same thing?? Thanks, Chris
Read the bankruptcy odcs the current shres will be canceled. the whole idiotic co should be canceled.
As slackeral said, read UAL's bankruptcy docs. I don't know the UAL details. Generically, a company will file a (series of) plan of reorganization. Eventually, after bankruptcy lawyers have feasted on the carcass, the judge approves the plan. If at that point the company has so little in assets that the debtors can't be repaid in full, then usually the plan calls for the equity to be canceled. In that case, stock = zero.
http://www.united.com/page/framedpage/0,6837,1378,00.html I'm a broker and I need more information - where can I go? YOU SHOULD CAREFULLY AND THOROUGHLY REVIEW THE DISCLOSURE STATEMENT AND POR. IN ADDITION, YOU MAY WISH TO SEEK LEGAL ADVICE CONCERNING THE POR AND CLASSIFICATION AND TREATMENT OF YOUR CLAIM UNDER THE POR. The POR and Disclosure Statement may be obtained from United's private website or by contacting the Debtors' Solicitation Agent pursuant to the information set forth above. When will UAL formally emerge from Chapter 11? United expects to exit Chapter 11 in February 2006, however, this timeline may be affected by a variety of factors, many out of United's control. What does it mean that the common stock will be cancelled? Why aren't current common stockholders receiving anything under the Plan? As United has said for some time would likely be the case, the proposed POR provides that UAL's current common stock will be cancelled and cease to have any value. The Bankruptcy Code generally prohibits distributions to stockholders until more senior creditors are paid in full. If you would like additional information about the POR, it may be obtained from Debtors' private website or by contacting the Debtors' Solicitation Agent pursuant to the information set forth above. Will Trust Originated Preferred Securities (TOPrS) be cancelled? Yes. Holders of TOPrS will not receive a distribution under the Plan.