It is currently in chapter 11 with DIP financing. Will they issue new stock? Will they continue to have the same stock? What could possibly happen?|||It totally depends on what happens in bankruptcy court, in some cases the shareholders would receive some sort of compensation if there was any money left after everyone else is taken care of, but in Ch. 11 restructuring that almost always results in a company restructuring in new stock issued afterwards. DIP financing simply allows current debt holders specifically those who participated in the DIP financing the opportunity to have a stake in the new company's equity. 100% of the time when DIP financing is undertaken the company intends to restructure with new stock issued after the process, so current stock in the company will be dissolved as part of the bankruptcy proceedings.|||They will have to merge with the Purple sheet company. Or maybe even the Orange sheet company...|||the bankruptcy court is in charge.
shares may prove to be worthless. or they may not.
place your bets now -- cash only, please.
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