It is not incorrect in every case. Not every bankruptcy ends up with common shares being cancelled without the shareholders being compensated, either with cash or shares in the new company that emerges.
Sometimes they are cancelled without the shareholders receiving compensation, IF there is not any equity value to share after all the creditors and liabilities have been taken care of. In this case, based on their disclosure in the filing, there is quite a bit of assets over liabilities to the tune of 1.3 billion by their own admission.
I will agree with you that the common shareholder is last on the list to be compensated, but that does not mean every single time they will receive nothing. It is on a case by case basis. I was in CEMJQ, a few years ago. It went from .03 to $1.78 during the bk process. When they merged from BK, after about a year long process, they ended up giving the commons a valuation of $0.27 per share. I had already sold all my shares by then.
I will take my chances here. This has potential for a multi-bagger written all over it, IMO. UMPLQ went $0.16 to over $2.00 in about 5 weeks time, and I think they were in worse shape than BBEPQ. They may end up with nothing when all is said and done, I don't know, but they have had a great opportunity to make some $ in the process.
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