Replies to post #15264 on DigitalTown, Inc. (DGTW)

[Web76]

Thanks for clarification, trader59.

Chapter 7 cannot be undone and results in the liquidation and shut down of the company. This trustee already suspects a pump and dump was run, so will likely cancel the stock once he's done.

I'm not completely up on that. For instance, for all I knew perhaps it could be reversed or "undone" while there is a process still not completed. The period before the "once he's done" part as you put it.

If that is so, however, i.e. can't be undone and only liquidation and shutdown remains, then how could the stock not be canceled? In other words, how could it only be "will likely cancel" vs. "must and will be" canceled? Stervc said he's never seen a stock come back from a Ch. 7 earlier. Has anyone, is it even possible?

Why would a company proposing to continue operations lead in with a pumpish headline to their Chapter 11 filing? Why would a company that was dead for 5 years pop up all of a sudden to file bankruptcy in the first place and have to address all the debt with 3B shares in the O/S owning nothing?

You raise important questions indeed, and perhaps you were even right all along. (Is this whole saga like the movie Trading Places, and now stervc owes you $1 on a bet about who turned out to be right?) ;) However, I would still just wonder if it was worth it to pursue Chapter 11 to preserve the tax benefit from prior years losses, and maybe even some things like the software, the latter of which admittedly and apparently needed work if I'm not mistaken. And anything else I might be missing now.