RCC Holdings Corp fka RCCH

[mcokpba]

JohnWilliams - "....would the shorts have to cover?"

My comment - No, and that is exactly the reason for the effort to force a pink listed company into Chapter 11 bankruptcy.

Corporate Bankruptcy Mythology by the Securities and Exchange Commission.

Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.

The BOLD is by the SEC not mcokpba.

http://www.sec.gov/investor/pubs/bankrupt.htm

My comment - frogdreaming can you please explain what SEC means when it states, "cancel the existing equity shares"?

Hint - The naked short sellers NEVER have to cover Federal Bankruptcy Court cancelled shares.

frogdreaming - "The company no longer exists, but the shares do and they transfer to the new company."

My comment - frogdreaming can you please explain what the SEC means when it states, "the creditors and the bondholders become the new owners of the shares"?

Hint - Naked short sellers reap immense profits because the short squeeze never occurs in a Chapter 11 bankruptcy and the naked short sellers NEVER have to cover because as the SEC website states, "In most instances, the company's plan of reorganization will cancel the existing equity shares."

Note - I am still limited to only one post a day.

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