what will happen to the stocks of the bankrupted company?

Question

what will happen to the stocks of a bankrupted company once it accept a merger/take over bid from another company?

eg: US Air & Delta (bankrupt)

so u mean i could loose some money?

I bought that stock when it as 60 cents

Answer 1

Shareholders get whatever the creditors give them. It can be nothing, it can be something. BIG RISK for little gain unless you like to gamble.

Unless the company exits from bankruptcy, the shares become worthless. Until then, it's basically a penny stock.

As I said two months ago on a similar question, you'd do better sticking to other solvent companies like CAL, AMR, JBLU for your risks. It's still a very volatile industry. And can still go down. But oil prices is helping a bit.

The other question was, “Delta Airlines stock last six days - why??????”

60 cents isn't bad. You're doing well. Just be sure you're not the last one holding the bag!

Good luck!

Answer 2

It's really hard to say what will happen. In bankruptcy, creditors and bondholders get paid first. Equity holders may get something, but then, again, you may get hit by a car tomorrow. In the case of the Delta merger, well, the first thing to be done will be to placate the creditors, bondholders, corporate, employees, and then, maybe, you. The real question, though, is why were you actually holding this stock up to this point? I assume you're a masochist.

Answer 3

In a financial ruin, the inventory often will become valueless. in case you have inventory in a company this is offered by utilising yet another, the customer will often the two purchase up all your inventory, or replace the shares with shares of the procuring company.

Answer 4

normally if you hold shares in the company, the new company will buy them from you at the going rate!