Seadrill Ltd (SDRL)

[1manband]

In essence it was a 1:62.5 RS. I just wonder what happened to those who sold before they got their reorganized shares.

No, not really. In a reverse split, no new shares are issued. In this case, it was a bankruptcy reorganization and 98.4% of the shares are newly issued to entities other than the old shareholders. Therefore, it is very misleading to call it a reverse split.

I think a lot of people sold Old Seadrill shares incorrectly yesterday as a lot of discount brokers did not correctly restrict those shares from trading until later in the day. I expect a substantial amount of today's trading volume was forced buy-ins to cover the potential naked short positions created yesterday. And any losses those trades created will have to be paid by those shareholders that incorrectly executed those trades. There are probably some very unhappy, and somewhat poorer, Old Seadrill shareholders today. And that is not including the 40% decline in the stock price since Monday.