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Last Post: 11/22/2016 3:13:09 PM - Followers: 298 - Board type: Free - Posts Today: 0

**** BANKRUPTCY PLAYS ****

 

Q PLAYS ARE ON THE LOOSE!

 

SENIORITY OF EQUITY IN BANKRUPTCY DISTRIBUTION:

1.  TRUST PREFERRED

2.  TRADITIONAL PREFERRED

3.  COMMON STOCK

 

TRUST PREFERRED PLAYS: 

1.  WAHUQ 10M O/S, FACE VALUE $50, FROM .01 TO 8.90

2.  LEHKQ 12M O/S, FACE VALUE $25, FROM .0001 TO .13

3.  LEHLQ 12M O/S, FACE VALUE $25, FROM .0001 TO .10

4.  LHHMQ 16M O/S, FACE VALUE $25, FROM .0001 TO .13 

5.  LEHNQ 8M O/S, FACE VALUE $25, FROM .0001 TO .16

 

 

 

 

 

PREFERRED STOCK PLAYS: 

WAMPQ FROM .01 TO 36.50

LEHPQ .005 TO 5.25

BOTH HAVE $1,000 PER SHARE LIQUIDATION VALUE

 

 

 

 

15 LARGEST CORPORATE BANKRUPTCIES:

1.  Lehman Brothers Holdings  --  $639B

2.  Worldcom Inc  --  $103.9B

3.  Enron Corp  --  $63.4B

4.  Conseco Inc  --  61.4B

5.  Texaco Inc  --  35.9B

6.  Financial Corp of America  -- $33.9B

7.  Refco Inc  --  $33.3B

8.  Global Crossing Ltd  --  $30.2B

9,  Pacific Gas and Electric Co  --  $29.8B

10.  UAL Corp  --  $25.2B

11.  Delta Air Lines Inc  --  $21.8B

12.  Adelphia Communications  --  $21.5B

13.  Mcorp  --  $20.2B

14.  Mirant Corporation  --  $19.4B

15.  Delphi Corporation -- $16.6B

http://www.creditwritedowns.com/2008/09/chart-of-day-largest-bankruptcies-in-us.html

____________________________________________________________________________________________________________________

 

NOLs - Net Operating Loss  http://www.ibfd.org/portal/pdf/Excerpt_MergersandAcquisitions.pdf

4.1.1.3. Preservation of tax losses

All of the tax attributes of the merged corporation, including net operating losses (NOLs),

transfer to the surviving corporation in a tax-free merger (Sec. 381).

Subject to the limitations discussed below, the surviving corporation in a statutory merger or

consolidation of corporations may carry forward the {NOLs} of the absorbed companies to

reduce its taxable income in the 20 subsequent tax years from the tax year in which the loss

was incurred (Sec. 172). NOLs may be carried back 2 years.

Sec. 382, however, limits the use of NOL carry-forward losses, and certain other tax attributes

by the surviving corporation. If the pre-transaction shareholders of the loss corporation do not

own at least 50% of the fully diluted equity (other than non-voting, non-participating preferred

stock) of the surviving entity as applied under the rules of Sec. 382, the use of the NOLs by

the surviving corporation are limited to the fair market value of the merged entity immediately

before the transaction multiplied by the highest long-term tax-exempt bond rate applicable for

any of the 3 months before the transaction.

 

__________________________________________________________________________________________

CORPORATE BANKRUPTCY http://www.sec.gov/investor/pubs/bankrupt.htm

What happens when a public company files for protection under the federal bankruptcy laws? Who protects the interests of investors? Do the old securities have any value when, and if, the company is reorganized? We hope this information answers these and other frequently asked questions about the lengthy and sometimes uncertain bankruptcy process.

What Happens to the Company?
How Are Assets Divided in Bankruptcy?

Secured Creditors - often a bank, is paid first.

Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.

Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.


Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.

Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors.

Why Would a Company Choose Chapter 11?

"Prepackaged Bankruptcy Plans"
Sometimes companies prepare a reorganization plan that is negotiated and voted on by creditors and stockholders before they actually file for bankruptcy. This shortens and simplifies the process, saving the company money. For example, Resorts International and TWA used this method.

If prepackaged plans involve an offer to sell a security, they may have to be registered with the SEC. You will get a prospectus and a ballot, and it's important to vote if you want to have any impact on the process. Under the Bankruptcy Code, two-thirds of the stockholders who vote must accept the plan before it can be implemented, and dissenters will have to go along with the majority.

Most publicly-held companies will file under Chapter 11 rather than Chapter 7 because they can still run their business and control the bankruptcy process. Chapter 11 provides a process for rehabilitating the company's faltering business. Sometimes the company successfully works out a plan to return to profitability; sometimes, in the end, it liquidates. Under a Chapter 11 reorganization, a company usually keeps doing business and its stock and bonds may continue to trade in our securities markets. Since they still trade, the company must continue to file SEC reports with information about significant developments. For example, when a company declares bankruptcy, or has other significant corporate changes, they must report it within 15 days on the SEC's Form 8-K.

NOTE: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.







 

 

 

 

 

 

 

 

 

 

 

 

 






 

_________________________________________________________________________________________________________________________

DISCLAIMER:

Opinions expressed on this board are just that. Opinions. No moderator on this board is a licenced broker. Trading strategies discussed on this board are often high risk and not suitable for all investors. If you are losing money in the market, you may wish to seek the advice of a licenced securities professional.

NO ONE is responsible for your gains or losses in the market except YOU. If you follow stocks, strategies discussed on this board, you may LOSE ALL YOUR MONEY. Please weigh the strategies discussed here carefully against what you are willing to risk.

Many of the stocks discussed here are high risk and some WILL decline in value. Some are very high risk, and you could potentially lose ALL OF YOUR INVESTMENT.

Please do your own due diligence before buying or selling ANY SECURITY in the open market

 

WAMUQ
FLTWQ
VSTNQ
CEMJQ
ITMUQ
MTLQQ
QSGIQ
MESAQ
EOPIQ
NRTLQ
ATWOQ
TRXBQ
ANSVQ
LEHMQ
ABWTQ
TPPHQ
IDMCQ
DCNMQ
AMFIQ
MMPIQ
CJHBQ
CCTYQ
TWAIQ
LEHCQ
CBCGQ
PFCEQ
CPRKQ
RMIXQ
PLTGQ
TRXAQ
GACFQ
CORSQ
FRCMQ
THMRQ
ASYTQ
MMDAQ
XKEMQ
FGOCQ
MSNWQ
TRBCQ
HTVNQ
YBTVQ
BUNZQ
PBSOQ
SGERQ
EPGRQ
ABPIQ
GGBMQ
TLXTQ
ALTUQ
GFGFQ
BUTLQ
SUTMQ
LTVCQ
WAMKQ
EGLSQ
FTUSQ
IRWNQ
APSOQ
BWTRQ
TLPEQ
ACPIQ
VSUNQ
IPIXQ
MLRIQ
RNCHQ
MTICQ
TONEQ
OTROQ
FBTXQ
RVHLQ
LEHFQ
INKPQ
GOTTQ
LEHLQ
CGSYQ
NBFAQ
ADVBQ
WAMPQ
BPUFQ
FORBQ
LEHKQ
MBRKQ
AHMIQ
SBKCQ
TPUTQ
RGFCQ
NTRZQ
LEHJQ
ACPOQ
DIMEQ
CCOWQ
LEHGQ
JALSQ
BPURQ
TOUSQ
DSIIQ
SCOXQ
TWTRQ
FGHLQ
FLSCQ
CBONQ
XRMWQ
BKUNQ
PROXQ
ITYCQ
CHADQ
JALFQ
CBCDQ
LHHMQ
MCELQ
STHKQ
RLPHQ
NPNTQ
PLROQ
INGNQ
GAXIQ
CFWEQ
SNVHQ
ARTEQ
VRSOQ
SIDGQ
DESCQ
ZANYQ
FFEDQ
AMOAQ
SBLUQ
WAHUQ
ECTPQ
MCOAQ
CBCPQ
REDEQ
CSKEQ
IRIDQ
ANCJQ
PFFBQ
TELVQ
WSFGQ
MECAQ
STKTQ
AGATQ
VSTCQ
PGICQ
OHBIQ
LEHPQ
HYPRQ
ECSPQ
PTBTQ
SRLMQ
IMPCQ
PREZQ
DVIXQ
AFFIQ
ARDTQ
STXXQ
MTATQ
LEHNQ
SLSZQ
 

  

PostSubject
#4066  Sticky Note Q List EOD 9-16-10 HDOGTX 09/16/10 04:11:50 PM
#4031  Sticky Note Things to look for when a stock gets HDOGTX 09/14/10 04:04:22 PM
#4000  Sticky Note ANY decent Q should have: HDOGTX 09/13/10 12:43:03 PM
#4969   $COSIQ watch this one. Possible 5-bagger in next trop 11/07/16 10:12:07 AM
#4968   IMSC joins club. swampboots 10/10/16 09:30:04 AM
#4967   Rjetq ( Republic Airways ) bigfoot422 09/25/16 09:30:02 AM
#4966   Horsehead Holding Bk case, low ball assets sludgehound 08/28/16 06:40:35 PM
#4965   SIGAQ emerges from Bk 445pm ET sludgehound 04/12/16 04:48:15 PM
#4964   Peregrine Midstream Partners LLC filed a chapter sludgehound 04/12/16 12:47:58 PM
#4963   PSUN to file Bk in April - Sources sludgehound 04/05/16 12:15:42 PM
#4962   Nortel Bk court case is bloody mess sludgehound 04/05/16 11:10:58 AM
#4961   PSTR [OTC] files Bk sludgehound 04/01/16 06:11:06 PM
#4960   SUNE gearing up for potential bankruptcy. Rumored Hotlead 03/24/16 02:28:57 PM
#4959   TPLM smell Bk here sludgehound 03/24/16 02:23:28 PM
#4958   FELP gets more time Chpt 11 sludgehound 03/23/16 02:31:05 PM
#4957   Sports Authority Holdings $595 million bankruptcy loan has sludgehound 03/23/16 02:27:16 PM
#4956   Quantum Fuel Systems Files For Chapter 11 Bankruptcy sludgehound 03/23/16 09:25:28 AM
#4955   RJET swampboots 02/25/16 09:26:06 PM
#4954   new BK play - PWEBQ C-Money365 02/24/16 03:51:21 PM
#4953   CACHQ was exceptional today. Now the Q is C-Money365 02/17/16 09:47:27 PM
#4952   ZQKSQ C-Money365 02/02/16 03:47:24 PM
#4951   VIICQ .0002 x .0003 no dilution could be $treet Trader 01/26/16 03:21:25 PM
#4950   Yeah....I remember everybody going bonzo nutso over Q SantaZar 12/13/15 07:00:55 PM
#4949   ...do you remember the good ole days when ListenToMe 12/13/15 12:18:51 PM
#4948   DDAmanda® Chart on: $RGDXQ: Click on the chart SantaZar 12/12/15 12:59:05 PM
#4947   ARIOQ(.0001) >>Exit from BK Imminent Capstar 12/11/15 03:43:44 PM
#4946   VMSYQ .0005 up only 43,732,136 float thinnest Q stock $treet Trader 12/11/15 01:57:06 PM
#4945   VMSYQ .0005 has merger rumors 43,732,136 float could $treet Trader 12/11/15 01:39:33 PM
#4944   ACI & BTU Bk news story sludgehound 12/08/15 03:15:38 PM
#4943   Caesars in 79-yr-old bk Trust Indenture Act of 1939 sludgehound 12/06/15 07:01:52 PM
#4942   VMSYQ is still trading, shares haven't been cancelled. Liveingreenbay 10/16/15 05:03:53 PM
#4941   APP warns of cash need. Did do Bk sludgehound 10/05/15 09:21:47 AM
#4940   Anyone know whats up VMSYQ? bluebird50 09/17/15 02:30:13 AM
#4939   update to stock prices jdp2000 08/15/15 10:04:36 AM
#4938   MCPIQ compared to ANRZQ jdp2000 08/15/15 09:42:51 AM
#4937   private Samson Resources to file Ch 11 soon sludgehound 08/14/15 08:53:10 PM
#4936   American Apparel APP warns of cash need sludgehound 08/11/15 08:49:05 PM
#4935   Alpha Natural Resources, Inc. jdp2000 08/04/15 09:49:55 AM
#4934   Alpha Natural Resources, Inc jdp2000 08/03/15 03:41:38 PM
#4933   CRRSQ Aloha50investr 07/31/15 03:42:38 PM
#4932   Walter Energy Inc jdp2000 07/16/15 10:59:38 AM
#4931   CLDN may Bk for cash out -37% pre sludgehound 06/26/15 09:24:52 AM
#4930   MCPIQ UpTickMeASAP 06/25/15 04:23:39 PM
#4929   MCP From Seeking Alpha db 06/17/15 03:09:48 PM
#4928   IVAN files Bk at last sludgehound 06/03/15 09:10:03 AM
#4927   MCP S&P rating cut to D from CCC+ sludgehound 06/02/15 02:21:39 PM
#4926   Utilizing Court Call to participate in "listen only" mode. Enterprising Investor 05/07/15 11:34:37 AM
#4925   Most creditor claims belong to trust preferred holders. Enterprising Investor 04/21/15 02:43:19 PM
#4924   Blast from the past. AKAPAK 04/21/15 01:41:21 PM
#4923   TMCV/TMCVP Temecula Valley Bancorp Enterprising Investor 04/21/15 11:31:20 AM
#4922   "Gambling on the market: who buys the stock bar1080 03/10/15 11:23:24 AM
#4921   ANV Chapter 11 em sludgehound 03/10/15 09:59:04 AM
#4920   Stop spamming the boards. bar1080 03/09/15 09:19:08 PM
PostSubject