There is no guiding anyone out of the valley of death here. The old Corus Bankshares are already dead. You can elect to take advantage of the tax benefit or you can pass up on that money if you choose. At least that option exists.
Every investor should be interested in reading up on specific bankruptcy cases. Because every bankruptcy offers investors a unique opportunity to make money. Someone makes money with every Chapter 11 bankruptcy. They just have to find the right securities that stand to get most of the new equity upon emergence. (Chapter 7's aren't always money-makers for someone, but there are cases where a good vulture investor can identify a debt tranche that might be worth buying.) With Corus Bankshares, the money wasn't to be made with the old equity. It was to be made buying the TOPrS if you could find them trading at a distressed price.
Corus Bankshares is unlikely to be the last bank holding company that goes bankrupt. The lessons learned from this bankruptcy can help investors decide how to approach the next bank holding company that files for Chapter 11.
"The penny stock investor may be the most dangerous creature in the investment world, at least to himself.[...]His hypocrisy becomes most apparent when he then blames his losses on the greed of others." Robert C. Dugan, Director - JRM Capital
