Replies to post #7916 on Chemtura Corp (fka CHMT)

[Zardiw]

The main reason for terminating existing shares is so they can issue new shares to the people they still owe money to. It's called equity for debt.

If they come out of Ch11 with any value, and all creditors are paid off, then commons will often survive. Also, if they can get new funding, and the company has a heart, they will keep the commons intact. They might RS it a little though to give the new investors their percentage ownership of what they put in......z