Originally Posted by
Krautwald
Excuse me for a really unknowledgeable question here, but I'd like to know:
If a company goes through Chapter 11, is it very common to restructure in a way that effectively disowns the loyal shareholders who dared to stick around? Like, converting to new stock leaving the old stock to vanish?
I sold my CHC long ago but still hold a bit of helicopter stock so given the current off-shore situation I might as well learn about this stuff.
I wouldn't want to attempt to answer that question until the various filings are made, but there has been quite a bit of information regarding this buried in various financial filings.
There is a stark and ominous caution regarding the stock in the last filing.
As only 20% of the stock was publicly traded and that value has all but vanished, I would suggest there may potentially be some major battling over equity. There is already an investor lawsuit filed regarding the IPO, and those issues are US SEC regulatory issues.
Only time will tell if there is merit or substance to any of these claims.