EXCO Resources Inc (EXCE)

[ErnieBilco]

Reorganization
Many companies filing Chapter 11 ultimately emerge from bankruptcy under the terms of a reorganization plan filed with the courts. Reorganization for a company invariably means the cancellation of existing common stock and issuance of new stock. At this point, the pre-bankruptcy stock will officially be rendered worthless and will have no valid claim on any corporate assets.

Bankruptcy Stock Symbols
Once a reorganization plan has been announced, but before it is officially put into effect, the pre-bankruptcy shares will trade with a five-letter stock symbol ending in "Q," to prevent investor confusion as to the nature of the shares. The post-bankruptcy shares will trade with a stock symbol ending in "V" and will be referred to as "when-issued" shares, meaning that they will be the valid trading shares once the company officially emerges from bankruptcy. Ultimately, the "Q" shares will be rendered worthless.