Sunedison Inc. (fka SUNEQ)

[StonewallPatriot]

Chapter 11. This is the most comprehensive chapter of the Bankruptcy Code. It provides a myriad of options to reorganize debt, i.e., by repaying some debts, cancelling others and restructuring the remainder.Filing for chapter 11 bankruptcy protection simply means that a company is on the verge of bankruptcy, but believes that it can once again become successful if it is given an opportunity to reorganize its assets, debts and business affairs. Although the chapter 11 reorganization process is complex and expensive, most companies, if given the choice, prefer chapter 11 to other bankruptcy provisions such as chapter 7 and chapter 13, which cease company operations and lead to the total liquidation of assets to creditors. Filing for chapter 11 gives companies one last opportunity to be successful.Sometimes after a reorganization, a company will issue new stock that is considered different from the pre-reorganization stock. If this occurs, investors will need to know whether the company has given its shareholders the opportunity to exchange the old stock for new stock, because the old stock will usually be considered useless when the new stock is issued.



Read more: What happens to a company's stocks and bonds when it declares chapter 11 bankruptcy protection? | Investopedia http://www.investopedia.com/ask/answers/06/chapter11stocksbonds.asp#ixzz4GoSTRSqF