Legal Question in Business Law in Nevada

I own shares in a Nevada based INC. that is going to declare bankruptcy to restructure debt and rename and/or purchase another company. Are my shares worthless or can/will they be transferred into the name of the new company? Any information would help as I don't want to loose potential monies


Asked on 10/26/09, 9:58 pm

1 Answer from Attorneys
Jeffrey Cogan Jeffrey A. Cogan, Esq., Ltd.

It really depends on the plan of reorganization. Sometimes, they are wiped out, sometimes new shares are issued. The absolute priority rule prevents owners keeping stock unless the creditors are paid, but there are exceptions. If you want assistant or help following the case and interpreting the legal documents, email me for an appointment.

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Answered on 11/01/09, 11:36 am


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