Chapter 11 Bankruptcy
Chapter 11 Bankruptcy questions and answers
Find information on Chapter 11 Bankruptcy at the number 1 bankruptcy information site online, Bankruptcy Says Uncle
Q: why stocks will likely to go up after chapter 11 bankruptcy?
First I'd like to know something about Chapter 11 bankruptcy. How does it work? some people say it's a debt reconstruction, it doesn't actually mean the company goes bankrupt. But why it's called "bankruptcy protection", how does it relates to bankruptcy?
Second, why the price of a company's stock will go up after chapter 11 bankruptcy? Do you think right now is a good time to invest in GM and Six Flags inc? Thank you!!
A: The management of GM is begging investors not to buy GMGMQ stock anymore. Because this stock has no value. But many investors keep buying it anyway.
http://www.footnoted.org/blog-notes/gm-please-dont-buy-our-stock/
Buying worthless stocks usually leads to the loss of your whole investment. And for this reason you shouldn't buy shares of any company that has filed for bankruptcy.
Q: When a company announces it has filed for Chapter 11 bankruptcy does the stock then become worthless?
RH Donnelly (RHDC) announced it is going Chapter 11 today and I ownstock in the company. Will it go to zero today and become worthless?
A: Almost certainly. The reorganization plan approved by the bankruptcy court typically eliminates stock.
Q: Bondholders on a Chapter 7 or Chapter 11 bankruptcy?
What exactly happens to the bonds and bondholders of both a Chapter 7 and a Chapter 11 bankruptcy?
A: They may or may not get paid depending on if the bonds are secured or the company can generate payment.
Q: how does chapter 11 bankruptcy work and what will happen to the workers pension at chrysler?
Today Chrysler may be filling for bankruptcy and I would like to know what is going to happen to the workers money.
A: My answer is when the Chrysler company gets enough money to pay all of it's employees.Simultaneously then paychecks will be distributed until then it cannot be sued for insufficient funds.
Q: What happens to stock when a company comes out of chapter 11 bankruptcy?
United Airlines (UAL) was trading on the NYSE prior to coming out of bankruptcy in 2006. Now trading as UAUA on the NASDAQ, what happened to the UAL shares? Were they converted? Or did they just cease to exist?
A: In brankruptcy the company can just wipe out the shares and leave you with nothing. Stock shares are a form of debt.
Q: What is the success rate of companies after exiting Chapter 11 bankruptcy?
I tried a quick check on google to find a percent success rate (or failure) of companies after they exit Ch 11 but just found a bunch of info on processes. If a 100 companies file Ch. 11 and emerge, what percent of those companies survive vs. those who will shut down (or maybe are sold).
A: I would venture to say that most survive... Chapter 11 is re-organization of assets. They can continue to pay their bills, they're just freed up to pay the amount they can afford, rather than what's due.
Most companies under Chapter 11 are also revamping, coming up with new ideas for better products, or downsizing...etc... [i.e., Kmart went in with Sears and closed many stores].
Q: How much does it cost on avg for a Chapter 11 Bankruptcy and how long does it take for the company to emerge?
The company Im thinking about has 100 Mill in market cap, 1000 mill in debt. How long can I expect this company to be under bankruptcy protection and how much can it cost?
Thanks
The reason for the questions is to determine weather the bondholders would be better off forcing the company into bankruptcy or swaping their debt to stock....Please answer with average figures, or best estimates! (BTW, the company is MOVI)
A: Too many variables to answer -- If the company has a good plan, some debt is forgiven the plan is approved by the court it could take 5 to 7 years. Just looking at the raw figures you provide and the added debt burden of the cost and fees involved it can't be done and liquidation is the only thing left.
Q: Do I keep paying my bills to a credit card company "Advanta" which has filled chapter 11 bankruptcy?
I have a balance of 9000$ on the advanta account, but when i call the phone number on the statement it is telling me I have a balance of $0. My last statement was sent in mid november. and I just read that on november 8th the company filled chapter 11 bankruptcy.
Am I still responsible for the payments?
serious answers only please. this is serious!!
thanx in advance
A: Your account has most likely been sold to another company. You should continue making your payments to Advanta until you are told otherwise. YOUR debt doesn't go away because THEY file chapter 11.
Q: Is it still legal to file a chapter 11 bankruptcy in louisiana?
I am lost I cant remember if the president stopped chapter 11 filings or not....help..........................
A: The bankruptcy REFORM made filing bankruptcy more difficult in many cases. ALL forms of bankruptcy that existed before the reform still exist. You NEED an attorney to file ANY bankruptcy.
Q: What is the difference between chapter 7 and chapter 11 bankruptcy?
A lot of local businesses and big companies are closing, and I want to know a little more in depth why this is and what it all means.
A: Ch 11 is a reorganization of debts; many businesses that need to file bankruptcy file a Ch 11 because they plan to stay in business and wish to keep operating. Ch 11 can actually help a business. For example, if the business had so much debt that it couldn't get short term loans for operating expenses it might have trouble meeting payroll and may need to start laying off employees. If a Ch 11 allows the business to restructure its cash flow, it may not need to lay off employees, and thus can continue producing goods and services that will bring in revenue. Not all businesses that file Ch 11 do manage to remain in business. Particularly in today's difficult credit market, a business in Ch 11 may be unsuccessful in reorganizing its debt structure (not unlike homeowners who have trouble refinancing their mortgages just because lenders are more hesitant to lend money now than they used to be). Then it may need to convert its Ch 11 to a Ch 7 and close its doors.
Ch 7 means that a business is definitely going out of business. A business cannot file Ch 7 and remain in business. When a business files Ch 7, it closes down and all its assets are sold to pay creditors.
Q: Should America file for Chapter 11 bankruptcy and just start over?
Maybe this is the real answer to solving the problem with the economy, just start over.
A: i offer for your approval DAY ZERO the resetting of the world. all time and debt will be set to zero for no real apparent reason. none of this really matters anyway. the economy, time, morals...none of it is actually real so does it then really matter?
Q: When a company files for Chapter 11 bankruptcy court protection, what happens to the stock?
I mean, if you own shares of the company, you lose all of your investment, or can keep the stock during restructuring, hoping for better time to come?
A: Well if the creditors take it all you'll end up losing all the shares of stock you owned in the company.
I had KMart stock a few years ago and the day after they win retailer of the year they filed for Chap. 11. I saw them restructure and all my stock I owned was gone.
It's tough and it sucks knowing all that money is gone.
Q: How do I refinance my home if I am in Chapter 11 Bankruptcy?
I pay my bills, but just want my mortgage reduced. It would really help. How and who do I contact? My mortgage company won't talk to us.
A: I'm assuming your in a chapter 13 plan, not a chapter 11 for businesses. If you are in the chapter 13 payment plan and make the payments to the courts and looking to re finance your home, if you find someone that is willing to finance you, the trustee will have to have the documents submitted to the courts, it takes approx 30 days for the approval from the truste.. The first place you need to start is getting the financing, take the paperwork to your attorney who is handling your bankruptcy, and they submit that paperwork to the courts for approval. Anything financed, re financed, or having to do with any kind of loan while you are in a bankruptcy has to be approved by the trustee of the courts. They are acting like your financial advisor while in this plan and have to take into consideration your current debt that led you to go into the bankruptcy, and if you can handle a re fi or any other type of loan. Good Luck!!
Q: What to do as a shareholder if the company files for chapter 11 bankruptcy?
As a shareholder, is there anything they need to do? Legal filings or whatnot?
A: You should check with the government policy. See if there's any document that you need to submit or sth.
Q: if a company goes into chapter 11 bankruptcy can they still keep there building space?
a medical office is filing bankruptcy. I want to know can you still operate your business and keep the building you are paying for?
A: Yes. That's what Chapter 11 and Chapter 13 are all about.