Replies to post #3191 on Far East Energy Corp. (fka FEECQ)

[pennystock_es]

The PSC FEECQ it can not be subrogated to another company ?

[Value_Investor]

Of course the AV (Asset Value) is less than the LV (Liability Value) here which is why the company filed the bankruptcy!

For a CH7 Q stock the liabilities do not matter unless the AV exceeds the LV because in the powerful bankruptcy court the majority of debts and liabilities will be wiped out through the CH7 process! In another word the bankruptcy itself basically put all the liabilities of FEECQ into almost "Zero" value which is the purpose why the company filed the bankruptcy a couple of months ago! The AV is much much more important than its LV for a Q stock like FEECQ unless the AV is greater than the LV!

If a Q company still has Giant AV like FEECQ then most likely all the common shareholders might get something back (like the Cash Settlement) if they together hire a lawyer and file the lawsuit against the company because the lawsuit has the higher cash distribution priority than any creditors no matter they are secured ones or unsecured ones!

Which is why I'm expecting $0.0095 a share Cash Payment here...