The old common stockholders aren't the only ones who have an interest in a bankruptcy filing. If there are impaired claims that can recover more of their losses from a reorganization (Chapter 11) instead of a liquidation (Chapter 7), it makes more sense to put together a Plan of Reorganization that lets the company emerge and begin operations again.
The hearings that have been discussed on this board have nothing to do with the old equity. They are solely about where to position the FDIC in the chain of claims. The FDIC is trying to have their claims against Corus Bankshares treated as Class 3 claims. The people who bought the TOPrS believe the FDIC should be treated as a Class 5 claimant. Regardless of the outcome of these hearings, nothing is going to happen to the old equity.
As far as "rumors" that these actions have value to the old shareholders? They're not coming from anyone who understands the bankruptcy process.
"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
