Actually, in over 95 % of Chapter 11 Reorganization bankruptcies the Judge does cancel the common equity because NEW equity is the facility to appease secured creditors, unsecured creditors, other lien holders, bond holders, legitimate claimants.
The current, existing equity is considered burdensome to the Reorganization PLAN being made effective because NEW equity as described above cannot and will not be subordinate to the existing equity. Therefore and consequently the existing equity MUST be cancelled to allow for NEW equity to securetize the creditors and for the confirmation of the PLAN to be made effective.
Study at least a dozen Chapter 11 BK's and readers will see similar occurences and explanations to why the common equity must be cancelled.
On September 3rd, according to the Judge's written ruling on Kodak's current equity, and predicated on the Reorganization PLAN being made effective on September 3rd, the EKDKQ equity will be cancelled. At that exact moment the EKDKQ shares will no longer exist.
READ the sticky note on the Judge's Ruling.
To bite the worm of incite is to bite the HOOK of the antagonist . They win .
