Common Share Dissolution.
I'm not holding a major amount of shares in Sun and I'm just an investor in speculative chapter 11 companies so what I have to offer may or may not be of value.
One of the determining factors of stock in any chapter 11 company is the dissolving of existing shares in preparation for either bankruptcy or reorganization.
If reorganization is the course though, there would be either a dissolution and reissue under another name (wiping out all value in existing shares) or a retention of existing shares with possibly a dilution later and issue of additional shares to raise needed revenue.
If bankruptcy is the course, there would be no reissue.
In my experience (limited as it may be), a plan of reorganization filed with the chapter 11 petition generally spells out any changes in the status of existing shares.
I have been through all the headers of all 83 documents in the docket system and I can find no such motion or order granting the motion to dissolve existing shares.
There are however, numerous motions and court grants allowing the "Private" sale and transfer of SUNE shares (in large quantities) from Sunedison to various other businesses.
In March 2016, SunEdison Holdings Corporation (the “Seller”) began a
marketing process to solicit interest in the Shares Six qualified bidders in the solar power industry were contacted based on, among other things, their known appetite for UK assets, funds availability, and ability to transact on a short timeframe.
This may be an action by Sun to raise needed capitol for paying down its debts utilizing existing shares that it holds.
In that case, the existing shares may emerge unscathed when Sun closes its chapter 11 proceedings.
Chapter 11 investments are always a crap shoot though because the courts can order things without the companies agreement. Even the SEC says that while all chapter 11 bankruptcies don't end in a dissolution of existing shares, only 1 in 10 statistically don't.
Invest accordingly.
Please don't send me a note complaining about the length of this post.
It conveys useful information for investors unlike the majority of others that are worthless.
AI
