LINN Energy (fka LINEQ)

[1manband]

Can someone please explain whats going to happpen here with common shares...thank you

Under the current Plan of Reorganization as proposed, the existing common shares are going to be cancelled. Common shareholders will receive nothing.

"All existing equity interests of the Company will be extinguished without recovery."

Common shareholders are last in line for assets, and only get what is left after all debtors and creditors in front of them are paid in full for what they are owed. Based on the recent financial statements and the restructuring plan, Linn is far short of being able to repay what those other classes are owed. So, they will receive shares in a new company in lieu of amounts owed, and old common shareholders get nothing.

That is how bankruptcy works.

You may find this SEC bulletin on corporate bankruptcies helpful:

https://www.sec.gov/investor/pubs/bankrupt.htm