When the shares will be cancelled
I expect the shares will be cancelled before year end 2016.
Once the reorganization plan is approve by the court, it is 8 or 10 days before the court will issue the order setting the effective date. The reason for this delay is because it is the amount of time someone can file an appeal to the court order on the plan.
Once the appeal deadline passes for the plan, then the court will issues an order setting the 'effective date'. The instant that happens, the stock will be delisted, stock trading, and all of the shares cancelled. While this usually happens outside of normal trading hours, there have been a few times where the order issues in the middle of the day, and the stock is halted to never trade again.
This is what happened with RSHCQ last year. They filed Chapter 11 early in the year, and before the year was finished, the shares were halted, delisted and cancelled. Over there, they was a more complicated case since there was a few other court actions going on surrounding issues about the credit default swaps and the dealers; but the shares still got cancelled within the year.
I expect the timeline for MHRCQ will be shorter since they do not have those issues.
While there is a shareholder lawsuit, I do not see what good that will do. The shares are wiped out and equity is millions negative.
The rise in oil prices will not change much of anything since any benefit from the rise in assets will go to the higher priority classes and not the common shares.
Louis J. Desy Jr.
