Palm Harbor Homes (fka PHHMQ)

[56Chevy]

Superfly15- Thanx for the heads up. I'm not in this but for those who are I'm sure they're asking this question in regard to the offer by Cavco to purchase:

In a BK (PHHMQ) if someone wants to buy the company..what happens to equity (shareholders)?

Generally speaking, "absolute priority" rules under Chapter 7. Cash generated will be used to pay off creditors. Any excess cash would belong to equity. If the result is a small number, cash would be distributed. Larger amounts could lead to Chapter 11.

The number one mission/goal of the Bankruptcy courts in our country is to recover as much of the Creditors interest as possible...NOT the shareholders interest's. I have not looked at Palm Harbor's liabilities to it's creditors but I bet a coffee & donut the offer Cavco made would not leave anything for equity. ??