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"Current common stockholders wouldn't receive any distribution under the company's Chapter 11 reorganization plan, and their shares would be canceled, according to the disclosure statement."

and then this; will issue 944,737 shares of new common stock in exchange for the release of the trust's claims and its participation in a $50 million rights offering when it emerges.

What "distribution"? I understand common stock is a "claim" on net assets, but I am confused about the word; distribution. (see the following definition)

common stock noun
Ordinary capital shares of a corporation that have exclusive residual claim on the net assets and net income of the corporation after all prior claims have been paid.

Excerpted from The American Heritage Dictionary of the English Language, Third Edition Copyright © 1992 by Houghton Mifflin Company. Electronic version licensed from Lernout & Hauspie Speech Products N.V., further reproduction and distribution restricted in accordance with the Copyright Law of the United States. All rights reserved.

As far as the issuance of NEW shares, this seems to be a common practice when a company exits bankruptcy, but I don't know all the technical parts to this process... I suppose this is where I (we) ask my (our) broker to interpret this 'legaleze' and put it in plain english, i.e.; "do I have any stock of MFN which is worth any money" ?!

Keep your ear on the 'tracks' muffinXL, stay tuned... and I will let you know what else I find out over the next little bit of time.

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