Legal Question in Investment Law in New York
I own common stocks of the old CIT Group. After the restructuring plan, they wiped out all old common stocks. Do I have an option to go to court to get shares of the new CIT. The company never went bankrupt. It only filed for chapter 11. Thank you.
1 Answer from Attorneys
If the company issued new shares under a chapter 11 reorg, then the old shares are worthless. If you didnt receive shares in the reorganized company then you have no interest in the new one.
Chapter 11 is bankruptcy, it is for the purpose of reorganizing a business, in this instance it appears that the secured or senior debt holders took control of the company and wiped out the original equity owners.
If you are going to court, you're going to need deep pockets and and reason why the reorganization was not proper.
Good Luck.
Related Questions & Answers
-
I am an indian citizen currently living in USA and planing to buy an... Asked 8/19/09, 10:02 am in United States New York Investment Law
-
Friends and family investing Should I invest 5,000 dollars in a small computer... Asked 4/24/09, 12:45 pm in United States New York Investment Law
-
IRA'S beneficiary/spouse/other NYS law: does a spouse have to sign off as an IRA... Asked 12/03/08, 9:31 pm in United States New York Investment Law
-
Foreign capital coming into US A foreign national has contacted me through Career... Asked 11/06/08, 10:44 pm in United States New York Investment Law
-
Buying a House If a Real Estate Broaker sold you a house and you found out your... Asked 10/21/08, 12:47 pm in United States New York Investment Law