American airlines common stock. If the bankruptcy wipes out the common stock why is it still trading?
Answers:1 | LastUpdateAt:2012-10-02 11:36:02
Question- October
- Asked at 2012-07-27 23:58:00
It seems that ( AMR) have said they have the money and forward projected revenues to pay all its creditors, and this is mainly about cutting labor contracts to Delta standards and reduce pensions. Keeping intact Boeing orders . And with many of the senior management have large amounts of shares , both common and higher. With Delta was bankrupt and merger with Northwest. What happened to Delta common stock during the bankruptcy and merger with Northwest?
Answer1BatulAnswered at 2012-10-02 11:36:02
Your question (unlike the explanatory part below it , sorry to say) is fundamentally a very good question . The operative part of the question is : " If the bankruptcy ends ordinary shares ... ? " There are at least three possible outcomes result :
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1. All shares are worthless and canceled when the company emerges from bankruptcy ; MedlinePlus
2. The company settled and some value left for common shareholders , and MedlinePlus
3. The company restructured and as part of its exit from bankruptcy , common shareholders are given a small stake in the new company . MedlinePlus
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Your question was the subject of a great article in BusinessWeek this past summer , linked below . MedlinePlus
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Also keep in mind that some people just love to play and deal with this type of society , in a roll of the dice . MedlinePlus
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As for your question Delta : MedlinePlus
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From USA Today : Delta emerged from bankruptcy on Monday after 19 months ? Reorganization that saw him shed billions in costs . His previous actions were canceled when it left bankruptcy.
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Question:American airlines common stock. If the bankruptcy wipes out the common stock why is it still trading?
