Absolutely exud, "a reasonable expectation that the company will emerge from bankruptcy" is the paramount consideration.
If the debt to asset ration is reasonably in balance one should be able to have the expectation that commons will survive.
Sadly, the judicial system seems to favor management screwing shareholders while at the same time voting themselves huge bonus or incentive plans, but that is another issue.
The most recent AbitibiBowater debacle is a case in point. Management voted themselves 8.5 % of the reorganized company, valued millions of acres of standing timber at zero dollars (?) withheld hundreds of millions off the books for August Liquidity purposes, sold non core assets off for less than low bid, undervalued other assets across the board, paid a valuation firm 60 million bucks to make it "seem" like the truth, had three solvent quarters in a row prior to the judges decision, renegotiated union contracts downwards, accepted 380 million less for a hydro appropriation then it was worth, and generally lied their way through the entire process.
There's not much you can do about it if the judge is sleeping with management but equity should have had a better than odds on chance of survival if there were any oversight to the process.
A reasonable expectation that the company will emerge from bankruptcy is a critical issue, but as recounted above, not the only one.
GLTA !!
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