Lelantos Holdings Inc (LNTO)

[Gold prospector]

When a company files for Chapter 11 bankruptcy, the management of the company is still in charge of the daily operations. That said, significant business decisions, especially those pertaining to debt or debt securities, are sent to the bankruptcy court for approval. While the firm is in Chapter 11, its stock will still have value, but there is a temporary trading freeze. Although the stock will be delisted, over the counter (OTC) trading may still occur. In other words, the equity a broker has invested in the firm is not valued at zero, but their true value cannot be easily determined since the shares are no longer publicly traded.





Read more: Does a shareholder lose all of their equity once a Chapter 11 bankruptcy is filed by the company? | Investopedia http://www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp#ixzz40O3gOdZP
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