RCC Holdings Corp fka RCCH

[frogdreaming]

Read it again.

In most instances, the company's plan of reorganization will cancel the existing equity shares.

The COMPANY'S plan.......

Yes, the COMPANY can escape its obligations to its shareholders via bankruptcy, but it is the COMPANY that makes that decision not the court and not the shorters. If a NSS existed and the company knew it, they could in fact use the bankruptcy to destroy the short positions.

The company could use the bankruptcy court to enforce the exchange of existing shares for 'new' shares in the reorganized company thereby creating a court enforced squeeze.

If NSS positions actually occurred in real life, the companies and the courts would be having a field day. The mythologies always fall apart when you actually look into the details and stop believing in fairy tales.