As usual, not true at all. Odds of meaningful return are significantly better than 1%. As of now, it stands at 10%, down from 78% in the 80's and 44% in the 90's. This general "decline" in recovery is attributable to the increase in the amount of secured debt. But remember, in our case, there is no secured debt other than the limited Apple debt secured by ASF furnaces.
Let's not spread false information, shall we?
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Of 41 bankrupt public companies that announced reorganization plans in 2009 and 2010, only four delivered returns to shareholders, according to a study by Andrew Wood, a student at the UCLA School of Law who works with Lynn LoPucki, a UCLA bankruptcy law professor. Of the companies that went through bankruptcy from 1991 through 1996, 44 percent had returns for shareholders. The figure was 78 percent for those that went bankrupt from 1982 to 1987. "The number of cases in which equity makes more than a nominal recovery has declined since approximately 1987," wrote Wood. The study cites an increase in the amount of secured debt carried by companies as one reason for the decline in shareholder recoveries.
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