Velti Plc (VELTF)

[knacak]

Velti's bank debt had been in default for some time when GSO acquired it on Nov. 1, and the stock price had plummeted, reflections of the damage done to the business by "the rapid and continued deterioration of the Greek economy," according to Velti's bankruptcy court papers.
Shareholders sued Velti in August, after the company revealed its revenue had fallen nearly 47%, and announced plans to restructure. The shareholders accused the company and its executives of misleading investors about its financial affairs and hiding alleged problems with customers in Greece and Cyprus.
Stock that sold for as much as $13.73 per share in March 2012 was going for less than $2 per share a year later.
Velti filed for bankruptcy in November, putting the brakes on the shareholder litigation. Typically, bankruptcy spells the end of shareholder value, as creditors move to capture all assets, including the proceeds of director and officer liability insurance.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)