While w/o knowing A/L commons can not be cancelled. In my opinion, and I hope i'm wrong commons will get cancelled at some point. If for the simple fact, why pay anyone if you don't have to. Prefered will get something 10-20% and CT's I don't think will get full price, but more than prefered maybe 25-35% face value. I hold all shares structures so before anyone starts trying to hunt me down with flame thrower,this is again just opinion, and I hope I am wrong. I pasted below off the SEC website how bankruptcy creditors are paid in case anyone doesn't know.
How Are Assets Divided in Bankruptcy?
Secured Creditors - often a bank, is paid first.
Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.
Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid
Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.
I would like to stress we need an EC at the proceedings to voice and protect our interest so get your letters requesting an EC asap. GLTA
