We need to thank you!
There are several fallacies in the way most of these bankruptcies are resolved.
Going into bankruptcy, it's assumed that the common holders are wiped out. It becomes the burden of the common holders to prove there's equity value. What happened to private property rights? Stock is the property of the owners, but the bankruptcy process takes it from us without due process. It's taken unless we can prove it has positive value. It's like taking someone's car because you "beleive" it has no value. And when they want it back, you say that to get it back, they have to prove it does have value. This is a constitutional issue.
When the negative news drives down the stock price, and most mutual funds are forced to sell, the court believes the stock must be worthless because it's selling for pennies. And the courts actually have the gall to use that fact to show that the stock's worthless.
The court uses the market price when it suits them. But when it comes to the reorganization, stock is handed out to various parties to settle debts without a market valuation. If ABWTQ currently has equity value, that fact would be established by floating the new stock and notes by way of something akin to an IPO. If the market value exceeds the debts, the difference would be awarded to the current stockholders. It's fair, honest, and is not in violation of the constitution.
