What happens to my stock when a company emerges from bankruptcy?

I own stock in a company that is getting ready to emerge from bankruptcy, with a new stock symbol. Will my stock be converted into the new stock symbol or stay the old symbol? Will my current stock be worth the same price as newly issued common stock? What will happen to my shares?|||Kaiser Aluminum and United have just exited bankruptcy. There is a lag time for distributions to the former accounts and you can find it on MarketWatch.com. Kaiser will be distributed on July 28th and then we will find out how many shares of the new company KALU are worth of our old stock KLUCQ. There should be like a 700:1 ratio or so, according to my math. No one knows until the distribution date.


What that date is for United, I don't know. But our shares do not just disappear. They are still worth something, don't worry. Your account will be updated on the 28th with the correct amount of shares and proper value. I just wish it were a 1:1 swap! Wouldn't that be nice?





Best of luck to you!|||It does convert but still worthless. And the stock will be under a new symbol.|||The old stock evaporates and you get zero.|||Contact their Investor Relations Department and ask them.|||It depends on what kind of restructuring and settlement that the creditors came to in the courts. So, the situation is different for different companies emerging from bankruptcy.





Usually, the firm goes to the bondholders (how much depends on the various clauses in the bonds). Then, the preferred and then finally the common stockholders, if there's anything left by then. Often times, there will be nothing left, so you don't get any new stock and just a notice that you have nothing now. Sometimes, they'll scape together a little cash and you might get a few cents per share. You might or might not get the new shares, but you don't always.





The majority of the new stock will be held by the old bondholders because creditors have a higher claim to the assets of the company. You can always contact the investor relations or the company directly to find out what happened. Your broker might or might not know.|||Probably something akin to a Zombie. Form, but no substance.|||Probably your stock will be worthless after the deal, but you may get something for it if you're lucky. I had Western Union, and actually got a few pennies for it, since the bankruptcy auction brought in more than expected. But usually, it's a washout.|||Are you referring to Kaiser Aluminum? If so, don't expect anything. There is a reason that the stock is now trading at less than a cent a share.|||It implodes|||Well, my United Airlines stock just went away. My brokerage stopped showing it in my account after a while.