Cal Dive International Inc (CDVIQ)

[c-dive]

If creditors are paid in full, which is rare, stockholders will be given the opportunity to file claims. ->


What is Chapter 7 Bankruptcy?
Companies that decide they cannot continue to do business usually file under Chapter 7 bankruptcy protection. In Chapter 7, all assets are liquidated and the proceeds are used to pay administrative and legal expenses, followed by creditors. Collateral is returned to secured creditors, who are grouped with unsecured creditors for the remainder of their claim if the collateral fails to cover the debts. Unsecured creditors, including bondholders, may receive some money if there is any left.

But the company is not required to notify stockholders of the Chapter 7 filing, since they generally are not entitled to a payback if the shares have lost their value. If creditors are paid in full, which is rare, stockholders will be given the opportunity to file claims.