posted
Delphi declared bankruptcy in oct and the largest provider of car parts fell to .33. Does anyone know if during the reorganization the court could render the current shares worthless? Its now trading on the pinks as dphiq
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quote:Originally posted by realperson: Delphi declared bankruptcy in oct and the largest provider of car parts fell to .33. Does anyone know if during the reorganization the court could render the current shares worthless? Its now trading on the pinks as dphiq
YES!!! When they leave Bankrupcy....I would say a 95% chance the court will cancel their stock and issue new stock....don't be a dummy.....day trade all you want but never hold.....Make sure you follow news carefully...But seriously...I wouldn't touch this....I got burned $28,000+ on K-Mart and Hayes Lemmerz.
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fyi, the court itself doens't cancel the stock. it just depends on how the new financing is structured. equity holders are last in line to recoup anything in a reorganization, its the bondholders and whoever offers new financing . this should answer your question. just keep your eye out for news stories.
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