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Stocks W / W.R. Grace & Co.
|Subject: Re: Co. considering filing for Chapter 11||Date: 2/6/2001 5:14 PM|
|Author: TMFSpirit||Number: 39 of 50|
You asked; I have one question, if they do file Chapter 11, What happens to the existing shares? (besides the market drops) I am assuming that GRA would be consolidating shares?
Chapter 11 is a bankruptcy option in which a trustee is appointed to reorganize the firm. Althought the existing claims of secuirty holders are likely to be reduced or replaced with different claims, it is epected that firm will continue operating. Both creditors and owners must approve the plan before the reorganiztion can be confimed by court action and becomes effective. Chapter 11 bankrupticies do not always result from buiness insolvency either. These asbestos claims against WC Grace seems to be forcing its hand to do something to get all these lawsuits consolidated and settled rather than having claims dribbling on and on for many years.
Watch the news on the stock..more information should be coming along soon. ( the news link is at the top of this page)
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