This is basic information. Chapter 7 bankruptcy cancels everything, including equity, automatically. PERIOD. Money is then distributed in order of ranking. Even if the equity holders were to receive something in the bankruptcy (which they won't here) the equity would still be cancelled. The equity cannot survive a Chapter 7 bankruptcy. It is automatic liquidation and cancelation.
Once the Chapter 7 is closed, there is nothing left to merge into. That is the LAW.
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