Starrion From United States of America, joined Jul 2003, 1148 posts, RR: 2
Reply 3, posted (11 years 8 months 1 week 2 days 15 hours ago) and read 1273 times:
Depends on how the bankruptcy is discharged. In most cases the common stock is simply canceled when the company comes out of protection. So your $1000 in stock becomes $0. That's what happened to me when Worldcom went down. I don't think Delta is going to escape ch11 which is why I dumped all my shares in Delta a few weeks ago. I had been planning to hold it long term as I am sure Delta will survive, but if the pilots force them into Ch 11 by not negotiating on their contract then I likely would have gotten as badly screwed as they're going to be.
Thankfully a last minute bounce allow me to clear a healthy profit on the deal but I would be wary of buying DAL -unless- you can afford to lose your investment.
Ouboy79 From United States of America, joined Nov 2001, 4651 posts, RR: 21
Reply 4, posted (11 years 8 months 1 week 2 days 15 hours ago) and read 1247 times:
I sold most of my U stock (US Airways on the NYSE) before their Ch11 filing but kept the original 10 that I had received when I turned 13. They were more sentimental than anything. However, in a Ch.11 filing it is up in the air on whether or not the stock will be zapped. With a Delta filing, it may not happen as they'll go in with a pre-packaged filing just to zap the pilots and some other contracts (all other employees are non-union and already down to a level the airline wants). US Airways I would expect their shares to survive this next filing as well. As stated previously...UAL is going to get cancelled out (already warned of this) and they'll find themselves like US Airways...with a new symbol sitting on the NASDAQ for a few years. If both carriers survive 5 years and trade at an acceptable level, they'll probably be welcomed back to the NYSE. I know US Airways is having their old ticker symbol "U" held for them by the NYSE.
UALongHaul From United States of America, joined Jun 2004, 227 posts, RR: 0
Reply 5, posted (11 years 8 months 1 week 2 days 15 hours ago) and read 1232 times:
If the organization is acquired when they go bankrupt, (much like UAL was) the stock will most likley be knocked down to an over the counter (OTC) exchange. You will notice the United stock (now UALAQ) had this happend. These stocks will still change hands somewhat, but will be worth zilch when the company decides to can the common stock program. If you own anything now, your best bet is to get rid of it before it hits the trading or value thresholds that will force it into a OTC market.
I think UAL had a press release or something that stated the UALAQ stock will be worth nothing effective xxx date.