Far East Energy Corp. (fka FEECQ)

[C.G.B Spender]

Another Bankrupt trip zero turd, I'll do some DD on this trash... Bet I find all sorts of reasons to sell.

And here it is...

Far East Energy Corporation (OTC:FEEC), the U.S. listed company that operates the Shouyang Coalbed Methane Production Sharing Contract in Shanxi Province, People's Republic of China, today announced it has ceased operations and commenced bankruptcy proceedings (the "Chapter 7 Case") by filing a voluntary petition for relief under provisions of Chapter 7 of Title 11 of the United States Code to initiate an orderly liquidation of the assets of the Company.

http://www.prnewswire.com/news-releases/far-east-energy-ceases-all-operations-files-voluntary-chapter-7-petition-300176301.html

Chapter 7 for shareholders...

Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors.

The investors who take the least risk are paid first. For example, secured creditors take less risk because the credit that they extend is usually backed by collateral, such as a mortgage or other assets of the company. They know they will get paid first if the company declares bankruptcy.

Bondholders have a greater potential for recovering their losses than stockholders, because bonds represent the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Stockholders own the company, and take greater risk. They could make more money if the company does well, but they could lose money if the company does poorly. The owners are last in line to be repaid if the company fails. Bankruptcy laws determine the order of payment.

https://www.sec.gov/investor/pubs/bankrupt.htm