AmeriResource Technologies Inc. (fka ARIOQ)

[surfkast]

While a company's stock most likely will continue trading after a Chapter 11 bankruptcy filing, it often gets delisted from the Nasdaq or NYSE after failing to meet listing standards. If the stock is delisted from one of the major exchanges, it still may trade on the Pink Sheets or OTCBB. Practically speaking, companies usually take a significant hit to their stock value after a bankruptcy filing. Investors should understand that existing shares of common stock in a company filing for Chapter 11 usually are cancelled, even if the company emerges and returns to profitability. Also, keep in mind that stockholders will not receive dividends during a bankruptcy proceeding.

Common stock usually becomes diluted during bankruptcy, at best, but you maybe able to exchange your old shares for new shares in the reorganized company. These new shares, however, likely will be fewer in number and lower in value. If a company is determined by the court to be insolvent, stockholders may not get anything after bankruptcy. In any event, investors' rights will be explained in the reorganization plan.


http://bankruptcy.findlaw.com/chapter-13/corporate-bankruptcy-what-every-investor-should-know.html