Court says "Sorry Charlie"

[Curtis0620]

http://biz.yahoo.com/rf/031022/media_loral_hughes_2.html

 

[silversurfer]

Well that makes me feel a whole lot better. I was seriously concerned about E* highjacking those satellites. It would have crippled D*....

 

[Stargazer]

If they turn down a DirecTv/Dish Network merger deal then it makes sense that they would turn down this as well.

 

[video62]

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]

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]

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]

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.