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Microcap & Penny Stocks : GBFE - GOLDEN BOOKS FAMILY ENTMT INC
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To: DavidCG who wrote (464)9/12/1999 11:07:00 AM
From: Sethpop  Read Replies (1) of 476
 
The reorganization plan has been approved by the court and will become effective "shortly" (which in bankruptcy court terms should be within 10 business days; however in this case there was still some paperwork to clean up from a resolved shareholder lawsuit...so they needed to wait for that to be final.) When the order is effective...as of that date, the old stock will be swapped for the warrants and the old debt will be converted to new debt and common stock etc. It will probably take a few days for the stock to begin trading as there are SEC registrations etc. for the company to carry out (still undone as far as I can tell) and it will probably trade on the NASDAQ (possibly small cap...but maybe major market.) It will have a new symbol so the charts will start fresh from the day of new trading. In many Chapter 11, where stock is issued to former creditors (either trade or debentures) the stock sells off in the first short period after it begins trading because those people just want their money freed and are not optimistic about keeping it invested with the same group who got the company to this state in the first place; however here there are no trade creditors being given stock (as they are paid 100% in this case)...and the old debenture holders may not be so quick to sell...so you may not have that as much here.
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