Originally Posted by
Nevets
Well, keep in mind that most of our stock is probably owned by hedge funds. If they feel that its a losing proposition, they may want to just shut it down and cash out.
I'm not sure I understand the "cash out" comment. There is not "cashing out". Usually in a chapter 7 the shareholders get wiped out completely, shareholders usually get wiped out completely in chapter 11 too. The money goes to the creditors depending on their position, guys that are "secured" get the largest pieces of the pie.
The investors know that the assets are only worth a fraction of what they're on the balance sheet for. There company probably isn't worth enough to satisfy the creditors right now...