I invested in company that has filed for bankruptcy. The company’s plan is to remain in business as a debtor-in-possession, but to eliminate the stock with no compensation to the shareholders. I just received the official notice of the bankruptcy hearing. The notice states, among other things, “In accordance with Local Bankruptcy Rule 3017-1(a), any objection to the Disclosure Statement (which states that the shareholders will receive no value for their stock) may be filed with the Court.”
Is this worth consulting a lawyer over? Might it do any good for me to protest? Do I even need a lawyer to protest, or can I just send in something I’ve written that states, in effect, that I want some sort of compensation if the company becomes a future success?
The notice states that if I don’t lodge a protest with the Court, that I consent to the company’s plan for sticking it to the shareholders.
I invested in a company…
Not a lawyer, but I don’t see what you have to protest. When a company goes bankrupt, the debt holders have priority over the equity holders. The prior equity usually becomes worthless.