Per the disclosure statement, preferred and equity remain unaltered after plan confirmation. You’re thinking of it as a liquidation where priority classes have to be paid off first in order for commons to receive a payout. Yes it is rare for commons to get paid out in a liquidation but it does happen. This is not a liquidation though. I think the real question is what will happen to the company post confirmation.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.