Originally Posted by
stbloc
Once they file BK the share holders are the last to get paid if any money is left when they auction off all the assets. The creditors are 1st to get paid, then the bond holders, and last the share holders. Which is why you are seeing a lot of guys putting in for early retirement. Once they file BK the stock becomes worthless and the employees who hold AMR stock loose all that money.
You are making WAY too many assumptions. Auctioning of assets occurs as the end game if a Chapter 7 liquidation. AA's BK path would almost certainly be a Chapter 11 reorganization and probably a pre-packaged (self-financed) one at that. Yes, common shareholders stock would likely become worthless (almost there now anyway) and some assets MAY be disposed of.