What happens to the stockholders of a company that files for bankruptcy?
Rather than trying a single-word search (e.g., bankruptcy), we decided to type several key words in the Yahoo! search bar. We typed “what, happens, stockholders, bankrupt” and swiftly found a web site that helped us with the answer. The U.S. Securities and Exchange Commission web site provided a web page devoted to corporate bankruptcy and what happens to all those involved, including the company and its stockholders. A bankrupt company can file Chapter 11 of the Bankruptcy Code to “reorganize” its business. According to the SEC, if a business files Chapter 11, “Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.” During Chapter 11 bankruptcy, the U.S. Trustee, the bankruptcy arm of the Justice Department, will appoint one or more committees to represent the interests o
Rather than trying a single-word search (e.g., bankruptcy), we decided to type several key words in the Yahoo! search bar. We typed “what, happens, stockholders, bankrupt” and swiftly found a web site that helped us with the answer. The U.S. Securities and Exchange Commission web site provided a web page devoted to corporate bankruptcy and what happens to all those involved, including the company and its stockholders. A bankrupt company can file Chapter 11 of the Bankruptcy Code to “reorganize” its business. According to the SEC, if a business files Chapter 11, “Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.” During Chapter 11 bankruptcy, the U.S. Trustee, the bankruptcy arm of the Justice Department, will appoint one or more committees to represent the interests of creditors and stockholders. The committee works with the company to develop a plan of reorganization to get out of debt. The pla
