in most Chapter 11 bankruptcies, the existing shareholders get essentially zeroed out by the court or diluted to dust by the new financing that takes virtually all the equity.
There are a very few exceptions where existing shareholders can still retain a non-trivial fraction of the equity, but those are usually large companies with strong cash flow from existing operations - like retailer K-Mart.
Smaller tech companies that go through Chapter 11 usually wipe out the existing investors and may even cancel the class of stock and reissue new stock to new investors to raise money. And often the creditors - preferred stock or bond and note holders are "paid" with the new stock - at least in part - as part of getting their approval for the restructuring. Each creditor class (but not common stock holders - who are not creditors) must vote as a class to approve restructuring plans presented by management.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.
Will Rogers
