Pacific Sunwear of California Inc fka PSUNQ

[1manband]

The last SEC filing states shares are cancelled and that Golden Gate gets all the shares and the company. Employees, vendors were not paid, and Shareholders were robbed. They are still in business.

Shareholders were not robbed.

The first notice that the common shares would be cancelled was in the 8-K that announced the bankruptcy filing back in April. This should not have been a surprise to anyone at least from that date, but actually earlier.

The reason that shareholders were NOT "robbed" is because the Company had negative shareholder's equity, and this was very clearly included in the Company's SEC filings.

https://www.sec.gov/Archives/edgar/data/874841/000087484115000092/q32015form10-q.htm

Common shareholders are dead last in line for the Company's assets. They only own and have a legal right to what is left after all the other classes are paid in full. Those classes are governments (the taxman), debtors, then creditors (with secured ranking higher than unsecured), then preferred shareholders, and finally common shareholders. As proven by the Company's own financial statements in their SEC filings, there was a very large shareholder's deficit. In other words, the value of the Company's assets were much less than the amounts owed to debtors and creditors. Which means common shareholders, being last in line, were legally entitled to........nothing. Which is exactly what they got.

I know the lesson was an expensive one, but that is how bankruptcy laws work.