Replies to post #105910 on RCC Holdings Corp fka RCCH

[frogdreaming]

More misinformation.

What misinformation? In a bankruptcy situation his post is correct, right? The question "IF RCCH had shorts (I know SHO doesn't reflect it) and RCCH went out of business, would the shorts have to cover?"... "Would the shorts have to cover?" In either situation the answer is the same! No, they would not have to cover! At least that is what I get from the responses

The question specifically does NOT ask about 'bankruptcy' it askes about going out of business. That is a very important distinction.

Bankruptcy is the process of RESTRUCTURING a business to SAVE it. Bankruptcy os a formal legal process that requires money and effort. Going out of business on the other hand is as simple as walking away.

Only in a court ordered bankruptcy can the shares be removed from existence. In any other scenario, the shares will still exist for all eternity. There is always the risk that the shell will be obtained by a viable entity and begin trading again.

The vast majority of all companies trading in these nether markets are companies that obtained a trade-able shell from an OUT OF BUSINESS company and began trading on the market. The shell will come with shares owned by the investors in the previous company.

If the new owners are very lucky the old shell will also come with a large number of 'short' positions. The new owners would love to have such a bonus as they would be the immediate beneficiaries of their own well controlled short squeeze. lol