Patriot Coal Corporation (fka PCXCQ)

[UNDAUNTED]

The court has authority to make all those decisions. People on here forget about the upside to cancelling stock. Shareholders no longer have debt they are unable to pay. (Remember that is the whole reason for going into BK).
If a company could legally wipe out it's own shareholders equity it would legally wipe out all its own debt. Who would debtor's sue for non-payment? There would be no owners!!!
That's not legal because you have to have bankruptcy court's blessing to wipe out shareholder equity and shareholder debt.
BK Courts try to arrive at a fair compromise for all parties concerned EXCEPT shareholders. Because the owners (shareholders) are the ones responsible for creating the mess in the first place by running up bills they can't pay.
As a small shareholder you may not feel responsible for the running of the company but ultimately you are, as part of a larger group of shareholders. You're in for the good times, you're in for the bad times.