Replies to post #33507 on AmeriResource Technologies Inc. (fka ARIOQ)

[MasterBlastr]

It is possible that all creditors need to be paid, and all assets of the old estate distributed to the creditors, and all conditions of the POR need to be satisfied first. Maybe that hasn't happened yet. The posting of docket showing $1068 bank account balance may tell us they are about done. This stock could then drift off into Zombieland and eventually be cancelled due to inactivity. That happens all the time, just look at the FINRA Daily List every day. But the corporate shell exists, like 1manband says. ARIO filed Chap 11, and not Chap 7. Can someone pick up the shell and recapitalize it, sooner or later. Yes. You might be massively reverse split and end up with something far less than even .0001 a share. I have seen that happen. I don't want to say you have no hope, but the best you can expect is some tiny fraction of another company, with far less than you paid. You may end up with a placeholder in your account that represents your ownership in the ARIO corporate shell. I have one myself from Corus Bankshares (formerly CORSQ). My thoughts and experience only.

[1manband]

Do you think SEC would allow this to trade if it was dead? You do know that there may be people out there buying shares and if this was dead, SEC wouldn't allow it to happen

That is an incorrect assumption. Before you invest money on such an assumption, you should learn what the laws and regulations are first.

The SEC has no authority to stop trading, and a lot of long dead companies continue to trade. They even WARN people they can't stop trading in the shares of bankrupt companies:

"A company's securities may continue to trade even after the company has filed for bankruptcy under Chapter 11.....There is no federal law that prohibits trading of securities of companies in bankruptcy."

https://www.sec.gov/investor/pubs/bankrupt.htm

ARIOQ is not an SEC registrant, so the SEC has nothing to do with the trading. FINRA is the primary regulator for OTC trading, and the stock will trade until FINRA is informed otherwise. There are quite a few companies that have gone through bankruptcy and/or liquidation, and the stock still trades because FINRA was never informed of the situation. Eventually, FINRA deletes the ticker but that can take awhile. ARIOQ will be deleted once Hoffmeister gets around to making the required notification, which may be delayed due to some specific language in the payment agreements with the creditors.

But to assume the stock is not going to be cancelled, and the ticker deleted, because it is still trading is not factual.

[Iron heart]

Very nice post, ranger! GLTY

Go ARIO

[I-Glow]

You posted:

There were no firm news saying this case is closed and shares will be cancelled on this and this date - it's been months since the last court date and it is still trading. Do you think SEC would allow this to trade if it was dead?

First, did you read Document 75 -

FINAL DECREE
The estate of the above named debtor(s) has been fully administered.

If this case is a Chapter 11 or 13, the deposit required by the plan will be distributed, and it is:
ORDERED that is discharged as trustee of the estate of the above named debtor(s) and the bond is canceled; and the case of the above named debtor(s) is closed.

Then from Document 74:

ORDERED:
1. That the above-captioned Chapter 11 case be and is hereby closed.

If you had read the SEC warning about investing in Q stocks - it clearly states that the stock can continue to trade during the bankruptcy process.

"Q" is for Caution
Investors are often confused by the fact that, despite the likelihood that the common stock of a bankrupt company will be cancelled, the company's securities may continue to trade after the company has filed for bankruptcy protection and before it emerges as a newly reorganized company. This confusion may be aggravated by the lengthy bankruptcy process—which may take months, if not years. Such securities typically trade on either the OTCBB or the Pink Sheets and the stock symbol will have a fifth letter "Q" at the end to denote the company’s bankrupt status.

Risks of Trading in Securities of Bankrupt Companies

When a company files for reorganization under the federal bankruptcy laws, investors are often tempted to buy or hold the company’s common stock in anticipation that the company that emerges from bankruptcy will be profitable. The reality is, however, that when companies emerge from bankruptcy, the common stock of the “old” company is usually worthless. In most instances, the company's plan of reorganization will cancel the existing equity shares.

In general, while a typical bankruptcy reorganization plan allows the “new” company to distribute new shares under a new trading symbol, holders of the common stock of the “old” company generally do not receive any of these shares. A company must pay off existing debt before it emerges from bankruptcy—and creditors, including bondholders, usually receive shares in the new company as partial payment. This leaves little or nothing of value for the common stockholders of the “old” company. This may seem unfair, but it reflects the established priority scheme of bankruptcy and the fact that, in contrast to bond holders, common stock holders take greater risk, but have the potential for the greater gain.

IG