Court says "Sorry Charlie" (1 Viewer)

Stargazer

Supporting Founder
Supporting Founder
Sep 7, 2003
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Western WV
If they turn down a DirecTv/Dish Network merger deal then it makes sense that they would turn down this as well.
 

video62

SatelliteGuys Pro
Sep 26, 2003
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The article doesn't have enough detail to really reveal the basis of the decision. I'd be sort of upset if I were a Loral shareholder - the courts forcing Loral to take a lower-priced offer.
 

Bill R

SatelliteGuys Pro
Supporting Founder
Sep 8, 2003
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Video62,

Here is some information about corporate bankruptcy: When a company declares bankruptcy the stock becomes just about worthless (Loral's stock closed at $0.40 a share today down $0.01). When the company pulls out of bankruptcy NEW stock is issued but the old stockholders are left out in the cold. They do NOT get to trade in their old stock for the new stock. My point is the seling price won't matter to the current shareowners.
 

video62

SatelliteGuys Pro
Sep 26, 2003
385
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Bill R said:
When the company pulls out of bankruptcy NEW stock is issued but the old stockholders are left out in the cold. They do NOT get to trade in their old stock for the new stock.

Gee, "that sucks!" (for previous shareholders).

I did not know the old -vs- new shares thing during a bankruptcy.

Thanks!
 

Bill R

SatelliteGuys Pro
Supporting Founder
Sep 8, 2003
364
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Yes, it sure does. The SEC site at http://www.sec.gov/investor/pubs/bankrupt.htm has some good information on this if you are interested.
 

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