Your posts regarding the lack of information are correct. There is a lot that is unknown.
The central feature of a reorganization under ch. 11 is the "plan" of reorganization which must be approved by the judge and in most instances by the creditors.
The plan spells out the details of who gets paid what and when. It will rearrange the payment schedule of debts so that the debtor (GTAT) has a realistic hope of making the payments. That requires a revenue stream that will support the plan. (Otherwise, the BK will be converted to a ch.7 liquidation.) GTAT seems to have a revenue stream. Those who are long in the stock are betting that it is adequate to fund a realistic repayment plan.
The plan can also reduce the debt owed to certain creditors - usually the unsecured creditors. They can also effect shareholders, but again this depends on the adequacy of the revenue stream to meet other obligations.
Each plan is unique to the situation, and I have seen some that are very creative. A lot is in the hands of the lawyers for both the debtor and the creditors. (And they aren't saying much about the details, which brings us back to the lack of information.)
GLTA
I would never presume to give advice of any kind to such worthy and knowledgable comrades. You should therefore do your own research rather than pay attention to the ramblings of this old man.
