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Bad_Dog

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Bad_Dog

Re: Grand Rio post# 1970

Friday, 09/23/2016 9:21:38 AM

Friday, September 23, 2016 9:21:38 AM

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If the company proceeds to file for Chapter 7 bankruptcy, the company's creditors are paid in a specific order. Generally, investors or creditors are paid in the following order:

1) Secured creditors
2) Unsecured creditors
3) Shareholders

Usually, little to nothing is leftover for shareholders after the more senior creditors are paid. However, if the company restructures and emerges from Chapter 11 as an improved organization, its share price may rise to higher levels than previously witnessed.

Read more: Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company? | Investopedia http://www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp#ixzz4L5K92rjn
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