Ferrari, this is high risk situation. It won't go to zero if the winning bid is low, but it would probably drop to ~1-2 cents and maybe have a bounce. It is unusual when a bankruptcy auction pays off all liabilities and has $ left over for stockholders. If the winning bid is $500 million or more, the stock will pop, but estimating the amount needed to pay off all liabilities is very difficult at this point, and $500 million might not be enough. I don't recommend such high risk trades for inexperienced people unless one can afford to take the hit.
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