nichale

What are the chances Delta Airlines will not survive? Is it worth take the risk and buy some of the Airlines stock?

jsled

THe old stock will be worthless when DAL comes out of bankruptcy. New shares will be issued to unsecured creditors in exchange for debt. Do not get stuck holding that old stock.

jtf560

The only way to touch the stock of an airline in bankrupcy is to speculate when it is going to go up with some kind of good news for the airline and then dump the stuff ASAP once you've made your fast bucks on it. Then maybe try again and again, but don't be left holding it when they are about ready to come out since it will be going nowhere but down since about everyone will know it is about to be dumped for an all new offering. It will go up and down quite a bit, but it will be dirt cheap to buy tons of it and make the money when it goes up such a high percentage of the low, low cost. You are essentially day trading it, though you will probably be holding it a little longer than that. Overall it is a huge gamble that most of us sure as heck shouldn't be taking. I do know of one guy who thought he was making a killing on USAirways when they were about to come out and just threw away 5 grand by not knowing what really happens and why it was so cheap.

YAKflyer

If you buy the stock it will be like throwing dice or taking a chance on a roulette wheel for a short term gain. When Delta exits chapter 11 all of the previously issued stock will be canceled and worthless. The only time it will have value is for the next couple of months. If you are better at guessing what the value of worthless stock will be in two weeks or a month than the other players take a chance.

The price of the original stock is not a predictor of the viability of Delta after they are on their own again.

nichale

Thanks everyone for sharing their information.

isgau8

Our company stock is of no value now and will be cancelled upon exit of Chap 11 proceedings. Any holders of common stock will receive 0 for their held shares as of the exit date.

As to buying the stock upon a reissue is another matter. My expectation is that the stock, offering price TBD, will fly for a bit and then settle at a lower price until the "analysts" can tell us of the real value.

The 66 cents you see on Yahoo finance is of the same value as 1970 Ford Pinto with a leaky gas tank.

ToiletDuck

So if you owned shares prior you don't maintain you piece of the company at all? That's shady.

Boneman

No, that's bankruptcy.

jsled

Yep. Secured creditors get paid, unsecured creditors get equity, and shareholders get sh!t - unless there is equity left over. However, both Delta and Northwest have said that the shares will be worthless.

ToiletDuck

I guess I didn't pick that up in eco class back in the day. I don't see how you can own part of a company then give that ownership up. Who owns it then? If I owned a 10th going in I should own 1/10th of it coming out.