If the company did not have liabilities they would not be in BK :)
The plan is to be sent to the judge in the next 35 days. A form 15 was already filed in march 2010. I do not see so far where any commons are to be cancelled. If you are to increase shareholder equity and wipe out that equity then how does this benefit shareholders? Makes no sense. I read the Bloomberg news differently. Bloomberg states all of the debt will be in new commons. That is a debt for equity exchange. That does not mean that commons will be cancelled. If the shareholders are to receive nothing as stated, could mean shareholders will not receive any dividends or PPS devalue difference. Some BK companies when they reemerge from BK (common intact) pay shareholders a dividend for a PPS devalue difference.
New equity can take any form or shape. A Forward split can be cause for a new equity, or a R/S or reissue of shares. The plan will tell all here if they are to be cancelled in which case I do not believe they will.
The reorganization plan will tell the tale here.
P.S. Bloomberg has misreported before.
Risking it all to obtain the reward, necessitates the motivation to succeed.
