DigitalTown, Inc. (DGTW)

[trader59]

Once a company goes from Chapter 11 to Chapter 7, it cannot be reversed, it is a one way street. You can start in Chapter 7, and the company or creditors elect to come up with a plan to continue, then transition to Chapter 11, but you cannot go back. Hope that makes sense.

I've seen a couple companies go through Chapter 7 and the Trustee fail to complete that final step to discharge the debt, cancel the equity, and dissolve the corporation. They're more used to dealing with private companies that there are no vultures lurking around to pick at the carcass of the company by hijacking (sometimes) or just make claims about it somehow being alive and running a pump and dump on it. So the trustees just leave a carcass shell with dead stock and debt still attached that the creditors don't expect any further payment.

This trustee is likely to follow through, though, as he already recognized the pump and dump (pretty sure he even used that term in a filing) being run. I'll be very surprised if he leaves a carcass.

Claims are due near the end of February, government claims in June, so this'll just lie lifeless for some time.