steve,,,,
with a chapter 11 filing the company does not have to pay any debt, can close stores with out penatlty, and can proceed with their every day affaitrs while they file a reorganization plan with the courts.
the courts must approve any plan/
now, debtors get paid first
bond owners get paid
then, the stock holders get to keep what is left.
but, since the debts will not be paid in full we assume, the stock holders get nothing.
that means , in many cases that the debtors and bond holders get the company and the stock holders get nothing. they lose their stock..
now it can be many variations , but , this is the general way it works. |
