Legal Question in Bankruptcy in California

If a company is operating as a chapter 11 debtors in possession, what happens to the shares of the company? What is the effect on stockholders?

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Asked on 5/23/11, 7:13 am

2 Answer from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

As I think you know, and as I've already told you, in nearly every chapter 11 the shareholders are last in line for any distribution of assets and they are usually wiped-out.

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Answered on 5/23/11, 7:42 am


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