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Last Post: 12/13/2017 9:37:55 AM - Followers: 297 - Board type: Free - Posts Today: 0

**** BANKRUPTCY PLAYS ****

 

Q PLAYS ARE ON THE LOOSE!

 

SENIORITY OF EQUITY IN BANKRUPTCY DISTRIBUTION:

1.  TRUST PREFERRED

2.  TRADITIONAL PREFERRED

3.  COMMON STOCK

 

TRUST PREFERRED PLAYS: 

1.  WAHUQ 10M O/S, FACE VALUE $50, FROM .01 TO 8.90

2.  LEHKQ 12M O/S, FACE VALUE $25, FROM .0001 TO .13

3.  LEHLQ 12M O/S, FACE VALUE $25, FROM .0001 TO .10

4.  LHHMQ 16M O/S, FACE VALUE $25, FROM .0001 TO .13 

5.  LEHNQ 8M O/S, FACE VALUE $25, FROM .0001 TO .16

 

 

 

 

 

PREFERRED STOCK PLAYS: 

WAMPQ FROM .01 TO 36.50

LEHPQ .005 TO 5.25

BOTH HAVE $1,000 PER SHARE LIQUIDATION VALUE

 

 

 

 

15 LARGEST CORPORATE BANKRUPTCIES:

1.  Lehman Brothers Holdings  --  $639B

2.  Worldcom Inc  --  $103.9B

3.  Enron Corp  --  $63.4B

4.  Conseco Inc  --  61.4B

5.  Texaco Inc  --  35.9B

6.  Financial Corp of America  -- $33.9B

7.  Refco Inc  --  $33.3B

8.  Global Crossing Ltd  --  $30.2B

9,  Pacific Gas and Electric Co  --  $29.8B

10.  UAL Corp  --  $25.2B

11.  Delta Air Lines Inc  --  $21.8B

12.  Adelphia Communications  --  $21.5B

13.  Mcorp  --  $20.2B

14.  Mirant Corporation  --  $19.4B

15.  Delphi Corporation -- $16.6B

http://www.creditwritedowns.com/2008/09/chart-of-day-largest-bankruptcies-in-us.html

____________________________________________________________________________________________________________________

 

NOLs - Net Operating Loss  http://www.ibfd.org/portal/pdf/Excerpt_MergersandAcquisitions.pdf

4.1.1.3. Preservation of tax losses

All of the tax attributes of the merged corporation, including net operating losses (NOLs),

transfer to the surviving corporation in a tax-free merger (Sec. 381).

Subject to the limitations discussed below, the surviving corporation in a statutory merger or

consolidation of corporations may carry forward the {NOLs} of the absorbed companies to

reduce its taxable income in the 20 subsequent tax years from the tax year in which the loss

was incurred (Sec. 172). NOLs may be carried back 2 years.

Sec. 382, however, limits the use of NOL carry-forward losses, and certain other tax attributes

by the surviving corporation. If the pre-transaction shareholders of the loss corporation do not

own at least 50% of the fully diluted equity (other than non-voting, non-participating preferred

stock) of the surviving entity as applied under the rules of Sec. 382, the use of the NOLs by

the surviving corporation are limited to the fair market value of the merged entity immediately

before the transaction multiplied by the highest long-term tax-exempt bond rate applicable for

any of the 3 months before the transaction.

 

__________________________________________________________________________________________

CORPORATE BANKRUPTCY http://www.sec.gov/investor/pubs/bankrupt.htm

What happens when a public company files for protection under the federal bankruptcy laws? Who protects the interests of investors? Do the old securities have any value when, and if, the company is reorganized? We hope this information answers these and other frequently asked questions about the lengthy and sometimes uncertain bankruptcy process.

What Happens to the Company?
How Are Assets Divided in Bankruptcy?

Secured Creditors - often a bank, is paid first.

Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.

Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.


Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.

Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors.

Why Would a Company Choose Chapter 11?

"Prepackaged Bankruptcy Plans"
Sometimes companies prepare a reorganization plan that is negotiated and voted on by creditors and stockholders before they actually file for bankruptcy. This shortens and simplifies the process, saving the company money. For example, Resorts International and TWA used this method.

If prepackaged plans involve an offer to sell a security, they may have to be registered with the SEC. You will get a prospectus and a ballot, and it's important to vote if you want to have any impact on the process. Under the Bankruptcy Code, two-thirds of the stockholders who vote must accept the plan before it can be implemented, and dissenters will have to go along with the majority.

Most publicly-held companies will file under Chapter 11 rather than Chapter 7 because they can still run their business and control the bankruptcy process. Chapter 11 provides a process for rehabilitating the company's faltering business. Sometimes the company successfully works out a plan to return to profitability; sometimes, in the end, it liquidates. Under a Chapter 11 reorganization, a company usually keeps doing business and its stock and bonds may continue to trade in our securities markets. Since they still trade, the company must continue to file SEC reports with information about significant developments. For example, when a company declares bankruptcy, or has other significant corporate changes, they must report it within 15 days on the SEC's Form 8-K.

NOTE: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.







 

 

 

 

 

 

 

 

 

 

 

 

 






 

_________________________________________________________________________________________________________________________

DISCLAIMER:

Opinions expressed on this board are just that. Opinions. No moderator on this board is a licenced broker. Trading strategies discussed on this board are often high risk and not suitable for all investors. If you are losing money in the market, you may wish to seek the advice of a licenced securities professional.

NO ONE is responsible for your gains or losses in the market except YOU. If you follow stocks, strategies discussed on this board, you may LOSE ALL YOUR MONEY. Please weigh the strategies discussed here carefully against what you are willing to risk.

Many of the stocks discussed here are high risk and some WILL decline in value. Some are very high risk, and you could potentially lose ALL OF YOUR INVESTMENT.

Please do your own due diligence before buying or selling ANY SECURITY in the open market

 

WAMUQ
FLTWQ
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MESAQ
EOPIQ
NRTLQ
ATWOQ
TRXBQ
ANSVQ
LEHMQ
ABWTQ
TPPHQ
IDMCQ
DCNMQ
AMFIQ
MMPIQ
CJHBQ
CCTYQ
TWAIQ
LEHCQ
CBCGQ
PFCEQ
CPRKQ
RMIXQ
PLTGQ
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THMRQ
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BUNZQ
PBSOQ
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MTICQ
TONEQ
OTROQ
FBTXQ
RVHLQ
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INKPQ
GOTTQ
LEHLQ
CGSYQ
NBFAQ
ADVBQ
WAMPQ
BPUFQ
FORBQ
LEHKQ
MBRKQ
AHMIQ
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FGHLQ
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CHADQ
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LHHMQ
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STHKQ
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NPNTQ
PLROQ
INGNQ
GAXIQ
CFWEQ
SNVHQ
ARTEQ
VRSOQ
SIDGQ
DESCQ
ZANYQ
FFEDQ
AMOAQ
SBLUQ
WAHUQ
ECTPQ
MCOAQ
CBCPQ
REDEQ
CSKEQ
IRIDQ
ANCJQ
PFFBQ
TELVQ
WSFGQ
MECAQ
STKTQ
AGATQ
VSTCQ
PGICQ
OHBIQ
LEHPQ
HYPRQ
ECSPQ
PTBTQ
SRLMQ
IMPCQ
PREZQ
DVIXQ
AFFIQ
ARDTQ
STXXQ
MTATQ
LEHNQ
SLSZQ
 

  

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PostSubject
#4066  Sticky Note Q List EOD 9-16-10 HDOGTX 09/16/10 04:11:50 PM
#4031  Sticky Note Things to look for when a stock gets HDOGTX 09/14/10 04:04:22 PM
#4000  Sticky Note ANY decent Q should have: HDOGTX 09/13/10 12:43:03 PM
#5047   Someone could tell me if the old Advanta rudderman 12/13/17 09:37:55 AM
#5046   DR DO YOU THINK .25 + WILL HAPPEN buxcapital 11/19/17 12:46:45 AM
#5045   THEY HAVE NO DEALS ALL THE FOLLOWERS THEY buxcapital 10/29/17 11:39:33 AM
#5044   When it goes on a run with high Themistocles_I 10/28/17 12:55:55 PM
#5043   When it’s less the .05 and nowhere near.10 buxcapital 10/28/17 12:34:18 PM
#5042   There is no right or wrong to a Themistocles_I 10/28/17 12:24:40 PM
#5041   Just admit your wrong mark this post .05 buxcapital 10/28/17 10:16:10 AM
#5040   As I said, you need to learn proper Themistocles_I 10/28/17 09:26:12 AM
#5039   You said .10 + in November others had buxcapital 10/28/17 08:59:11 AM
#5038   If you think after all of this time Themistocles_I 10/28/17 08:54:24 AM
#5037   SMART LINDA buxcapital 10/28/17 04:59:53 AM
#5036   LINDA CHECK OUT INMG AND DR IS SAY buxcapital 10/27/17 11:01:33 PM
#5035   $ROSG - Breakout with an extremely low float rbon63 10/26/17 11:04:37 AM
#5034   $DRYS - Breakout with a short squeeze in rbon63 10/25/17 02:19:55 PM
#5033   Thanks - someone already mentioned it linda1 10/23/17 09:56:18 AM
#5032   Hi Linda. I remember you from NWAV Themistocles_I 10/22/17 04:57:23 PM
#5031   $DGLY - Breakout with a low float of 6940K! rbon63 10/20/17 09:55:03 AM
#5030   $OPTT - Breakout now! rbon63 10/18/17 09:46:56 AM
#5028   GNLKQ reinstatement Link: http://www.bit.ly/2yPpESa dblock110 10/17/17 09:51:02 AM
#5025   $SOUPQ: Emergence from Bankruptcy makinezmoney 10/16/17 08:53:09 AM
#5024   $LBIX - Breakout buying frenzy taking place now rbon63 10/13/17 12:12:44 PM
#5023   $AEZS - Trending higher with a low float rbon63 10/12/17 01:06:29 PM
#5022   $ITUS - Breakout in progress with a low rbon63 10/12/17 12:43:54 PM
#5021   Anyone follow the OZON three-day run? This Opti Mist 10/11/17 04:20:27 PM
#5020   Low float stocks breakouts now into the close rbon63 10/11/17 04:05:36 PM
#5019   $ACRX - Breakout in progress awaiting FDA approval ! rbon63 10/10/17 12:22:41 PM
#5018   Biotechs breaking out now : $RNN,$VICL! rbon63 10/10/17 11:05:58 AM
#5017   $MNKD - Booming! rbon63 10/10/17 09:58:03 AM
#5016   $SRAX- Breakout with a low float of 8020K rbon63 10/09/17 03:41:49 PM
#5015   NSPR-Breakout with an extremely low float of 7470K rbon63 10/09/17 03:21:31 PM
#5014   $MTBC - Super hot reversal play! rbon63 10/06/17 10:02:58 AM
#5013   $GIGA - Breakout with a low float of 10,140K! rbon63 10/06/17 09:54:41 AM
#5012   $CAPR - Hot Stock with a low float rbon63 10/06/17 09:46:19 AM
#5011   $CDNA - Breakout buying frenzy taking place now! rbon63 10/05/17 11:38:37 AM
#5010   $CDNA - Breakout with a low float!! rbon63 10/05/17 09:56:58 AM
#5009   $FCEL - Breakout! rbon63 10/04/17 12:05:19 PM
#5008   $RGSE - Breakout! rbon63 10/04/17 09:16:05 AM
#5007   Good morning, premarket breakout stocks : $CATB, $CAPR, $MTBC! rbon63 10/04/17 08:24:38 AM
#5006   $KOOL - Breakout with extremely low float! rbon63 10/03/17 10:46:04 AM
#5005   $CLSN - Low float breakout! rbon63 10/03/17 10:31:56 AM
#5004   More stock breakouts in progress : $GALT and $SRAX! rbon63 10/02/17 02:50:14 PM
#5003   $ECYT - Breakout buying frenzy taking place now! rbon63 10/02/17 10:35:52 AM
#5002   $SGYP - Breakout with a short squeeze in rbon63 09/29/17 03:38:52 PM
#5001   $SGYP - Breakout now! rbon63 09/29/17 02:24:31 PM
#5000   $PTX - Breakout with a low float of rbon63 09/25/17 12:51:25 PM
#4999   $ITUS - Low float breakout buying frenzy taking rbon63 09/25/17 11:21:06 AM
#4998   $ITUS - Low float breakout now! rbon63 09/25/17 11:03:52 AM
#4997   Trifecta of super hot stocks trending higher now rbon63 09/22/17 10:56:22 AM
#4996   Extremely low float stocks breakouts now : $ETRM rbon63 09/22/17 10:22:06 AM
#4995   $SDRL - Breakout buying frenzy up 56% and climbing!! rbon63 09/20/17 01:10:51 PM
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