Legal Question in Investment Law in Tennessee

chapter 11 bankruptcy

If a person has stock in a particular company and that company files chapter 11 bankruptcy, does he retain his current shares or just what does this mean for the stockholder?


Asked on 2/27/06, 2:41 pm

1 Answer from Attorneys
Dr. Michael A. S. Guth Tennessee Attorney at Law Assists Pro Se (without a lawyer) Parties

Re: chapter 11 bankruptcy

Usually the shares become worthless. AFter emerging from bankruptcy, the firm issues new shares, but the old shareholders are not entitled automatically to shares in the post-bankruptcy firm.

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Answered on 2/27/06, 3:03 pm


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