Replies to post #3128 on Patriot Coal Corporation (fka PCXCQ)

[LostBall]

You are welcome, frankj. Just going off some of my own experiences. I don't know how high the stock will trade while it is going through the bk process, however, I do believe it is worth more than .23, LOL.

As far some posters stating that we will lose all our shares, there is always that possibility, because there is no guarantees. However, in order for that to happen, the company would have to prove that they have more liabilities than assets, leaving nothing for the shareholders to split among the approx 92 million shares. Based on the bk filing, they are showing approx $ 500 million of assets above the liabilities. This being the case, they would have to pay, or owe all that to creditors, leaving nothing. Also, they would have to prove in bk court all of it was gone, leaving nothing.

I will be suprised if an equity committee is not appointed to represent the shareholders with this much value to fight over. Many institutional holders are invested in the company, and I doubt they will go down without a fight.

In all disclaimers in the bk cases, the company, (in court they are know as the debtor), always states that commons may be cancelled leaving nothing. It is common practice they make this statement. However, it does not mean that will happen. As you read the boards, there are many posters who have invested in companies that have emerged from bk with shares intact or have received compensation in the form of cash or shares in the new company for their commons.

This process has just started. A company this large could easily take more than a year to work through the process before they emerge. Anyone that says they know the commons will be worthless does not what they are talking about. They probably have a vested interest (short) to want people to sell, and keep the price low.

No one knows how long this will take or what the shares will be worth when the judge approves the Plan of Reorganization and they finally emerge from bk. Anybody that tells you different than that is full of you know what.....