C and J Energy Services Inc. (fka CJESQ)

[Renee]

When a public company files for Chapter 11 Reorganization Bankruptcy it is 100 % about what the Secured Creditors want and of course, if the company can be viable after exiting BK.

Secured Creditors always want as much security as possible for their secured assets, and they are universally hostile to shareholders receiving any dispensation, which would (likely) include warrant holders.

Much depends on the monetary difference between total debts (secured and unsecured) and tangible assets (cash, land / buildings, verifiable contracts, etc).

So, if it is reasonable to argue that assets are usually discounted during bankruptcies (eg., fire sale valuations) then the Secured Creditors will likely argue that the debts exceed all assets, and because of their inherent risks in the reorganized company that they should obtain Court approval for every demand they have for augmented security.

All shareholders of stock BEFORE the bankruptcy was filed should contact the Trustee and ask for a Shareholder Equity Committee whereby if approved by the Judge a law firm would be appointed to represent the shareholders at cost to the company estate. *** Buyers of shares AFTER the bankruptcy was filed are never included because the Court views those share buyers as knowing the risks of buying shares.