Replies to post #3173 on Patriot Coal Corporation (fka PCXCQ)

[iheartweimers]

I have either held positions in or watched a number of
Chapter 11s from start to finish in the past year or so.
None of them have turned out well. The one that did result
in any recovery to stockholders at all, was they were issued
one new share for every 20 they held in the old paper, and
that was after a year of having illiquid funds tied up. Whether
that one share will ever grow to its former value remains to
be seen but I doubt it. With the exception of an airline, none
of the ones I was involved in owned much in the way of
physical property for assets, mostly assets were ideas, like
patents, goodwill, brand names, so they were toast after the
legal fees. But in no case do I remember the Debitor telling
holders of common stock in advance that their shares are
likely to be worthless. That is an indicator right there that
they have no intention of fighting for us. I would not be
surprised to find management converting or holding shares
in a series that is preferred, so they are safe even if we are
not.