It has been my experience that when a company declares bankruptcy, the stockholders lose everything. If the company is lucky enough to emerge and continue doing business, then new stock is issued, as with the case of MCI/Worldcom. However, in that case the SEC proved fraud and there will be a slight reimbursement of some pennies on the dollar. Fleming Foods, a former supplier to Kmart went bankrupt and all stockholders that held on lost everything. Not sure if Kmart stockholders lost everything when Kmart emerged from bankruptcy. If they did get to keep the stock, then there is a 50-50 shot here.
