Mr Cooper Group Inc (COOP)

[joe513]

This is nothing new. This is the way bankruptcy works and has worked for a 100 years. Chapter 11 is a legal process designed to eliminate debt and wipe out owners so a business can move on without those encumbrances. If anything, the process now is much cleaner than it was even 20 years ago as congress and the courts have refined the laws.

Anyone that owns the stock of a company that declares BK or buys the stock of a company that is in BK, needs to understand that the odds of any recover let alone some return are negligible. An incredible long shot. Even buying debt in companies that are in BK is a huge risk. You may not like it, but the hedge funds took that risk by studying the fundamentals closely in this case. They will be rewarded for that risk. That is their business model, they are very good at it.

Note: They didn't buy any commons. What does that tell you?