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Wall Street Breakfast: Must-Know News [View article]
Chapter 7 is dissolution
Chapter 11 is reorganization
I'm surprised nobody jumped on this error. Either (1) nobody read the comment or (2) nobody understood that it was an error or (3) nobody cares.
On Dec 04 10:38 AM jlounsbury59 wrote:
> Bankruptcy Question - - -
>
> Reorganization bankruptcy (Chapter 7) usually wipes out common stock.
> The exact situation depends on the final court decree. It is possible
> for some sort of equity to remain, but that is very uncommon. <br/>
>
> Dissolution bankruptcy (Chapter 11) always discards all equity. Debt
> is settled by distribution and liquidation of assets.
Wall Street Breakfast: Must-Know News [View article]
Reorganization bankruptcy (Chapter 7) usually wipes out common stock. The exact situation depends on the final court decree. It is possible for some sort of equity to remain, but that is very uncommon.
Dissolution bankruptcy (Chapter 11) always discards all equity. Debt is settled by distribution and liquidation of assets.
Wall Street Breakfast: Must-Know News [View article]