Corus Bankshares Inc. (fka CORSQ)

[jb1967lbk]

No, I'm not here to "persecute" anyone. I'm here to explain what happened to Corus Bankshares to anyone who's really interested in hearing the truth and explaining to them how they can at least salvage some of their money from an unfortunate investment situation.

A Chapter 11 filing does get filed with the intention to continue an insolvent business. However, they very seldom are filed with the intention of keeping the old equity intact. In the vast majority of circumstances, the old equity gets extinguished.

Have you read Corus Bankshares' Plan of Reorganization that was accepted by the bankruptcy court last year? You can find a copy of it here:

http://www.holdcoadvisors.com/wp-content/uploads/2011/11/corus-confirmation-order.pdf

Specifically, you'll want to review the outcome for the "Class 8 - Equity Interests". It's on page 25 of the document. It's quite direct and specific about what happened to the old equity.

As I also pointed out, studying bankruptcies is a smart thing for investors to do. Every bankruptcy has a different angle, Corus Bankshares being no exception. By studying bankruptcies, you can make a more intelligent decision in the future about which securities a company has outstanding that might make the most sense to own when the Plan of Reorganization goes into effect.