IPLY update

[DarkUnderlord]

If Interplay does file for Chapter 11 reorganization, does that mean the shares are worthless or could the stock still be traded if they are bankrupt?

Clueless with a capital C.

Anyone want to buy my Interplay shares? They're bankrupt you know... but you wanna buy them anyway? Come on, you know you want to.

What planet did these asshats come from?

 

[Murdoch]

If Interplay does file for Chapter 11 reorganization, does that mean the shares are worthless or could the stock still be traded if they are bankrupt?

Clueless with a capital C.

Anyone want to buy my Interplay shares? They're bankrupt you know... but you wanna buy them anyway? Come on, you know you want to.

What planet did these asshats come from?

Yeah, I'm no stockbroker or even smart, but just because a company files bankruptcy doesn't mean that their stock just up and vanishes. People still retain ownership of the stock, and it is a saleable commodity. Think of companies like Enron and Worldcom; people owned stock in them after they filed bankruptcy.

Now, whether someone would actually want to buy the stock is another matter, but it can still be traded.

 

[Brother None]

People still retain ownership of the stock, and it is a saleable commodity.

Yeah, they still have stock. It makes nice toiletpaper, I hear.

 

[DarkUnderlord]

Yeah, I'm no stockbroker or even smart, but just because a company files bankruptcy doesn't mean that their stock just up and vanishes. People still retain ownership of the stock, and it is a saleable commodity. Think of companies like Enron and Worldcom; people owned stock in them after they filed bankruptcy.

Yeah, and they were worthless. The fact you can still trade them is pretty much a formality (or something stupid people do when they think it'll come back from the dead). Hence the "Anyone want to buy my Interplay shares? They're bankrupt you know... but you wanna buy them anyway? Come on, you know you want to.".

http://invest-faq.com/articles/trade-worthless-shares.html

• One last caveat. Don't confuse a bankrupt company with a completely defunct company. Many companies continue operating while in bankruptcy proceedings, and their stock continues to trade. So the stock by definition is not worthless. In the newspaper listings, the prefix 'vj' is often used to indicate such companies. For example, when this article was first drafted, vjRAYtc (Raytech) closed at 4/38. However, a bankrupt company does not always have a low share price. About 25 years ago John Manville Co. was hit with asbestos lawsuits, and filed for bankruptcy to protect them against these suits. Except for the potential liabilities of the law suits, they had an enormously healthy balance sheet and their stock continued to trade high. More recently, about 1991 Columbia Gas of Ohio filed for bankruptcy to get out of some unfortunate long-term contracts they had written for natural gas purchases. Their stock continued to trade, generally in the $30 range, until they finally emerged with a favorable court ruling.

Interplay is defunct.

Here's a study on it, if you want.

Just in case you think Interplay might come back from the dead, here's the official word from the SEC.

• Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.

 

[Michael]

-snip-
Think of companies like Enron and Worldcom
-snip-

Who coincidentally were also driven into the ground by mismanagement...

Hey... Post number 69... 69 dude! .......cool