Delta Bankruptcy

[jetflyer]

What would happen to Delta stock in Bankruptcy?

Here's something I've been wondering because I've been thinking about buying Delta stock after the filing of bankruptcy. What happens to the stock? I've heard that companies in CH 11 sometimes reissue the stock, making the previous stock OBSOLETE.

Is this true? Did this happen at US Airways? Does anyone know?

Jet

 

[General Lee]

Nice title!

Jetflyer,


Thank you for seeing into the future. I really like your title for this thread. You and I don't know what will happen, and if you do know---then you better watch out because the SEC is watching you for insider trading. Have a great day.


Bye Bye--General Lee

 

[lowecur]

Here's something I've been wondering because I've been thinking about buying Delta stock after the filing of bankruptcy. What happens to the stock? I've heard that companies in CH 11 sometimes reissue the stock, making the previous stock OBSOLETE.

Is this true? Did this happen at US Airways? Does anyone know?

Jet

Yup, it's usually not a good investment. Investors and Stakeholders in the bankrupt company usually want a significant ownership portion of the company, and this is the only viable way to do it. All the previous stock for US Airways was retired and is thus worthless. Most of the new stock went to employees and the RSA.

I would only invest in DAL if you truly believe they will not enter bankruptcy.

Good Luck.

 

[FDJ2]

I would only invest in DAL if you truly believe they will not enter bankruptcy.

Good Luck.

I think he was referring to buying DAL stoke after DAL emerges from a potential BK, not now.

 

[jetflyer]

Actually I own no Delta stock now. I was thinking about buying some in the future if it went to around $2.00-2.50 a share, but now I probably won't.

Thank you Lowecur for clearing that up.

I did not know the stock could be REISSUED in CH 11 and all previous stock could go to $0.00 with the company still staying in business.

I guess I won't be buying Delta stock.

Jet

P.S. I CHANGED THE NAME OF THIS THREAD, didn't want the SEC on my hiney like you said General.

 

[jetflyer]

Changing the title of my first post didn't change the name of the thread. Anyone know how to?

Jet

 

[On Your Six]

Seems like we are getting a lot of people on this board who really don't think about the misleading titles they are posting.... I saw one about Delta selling its 777s to American a few weeks ago - couldn't be further from the truth.