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Author: rev2217 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 685  
Subject: Re: Buying Delta? Date: 9/18/2005 10:12 PM
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WDE,

Newbie here!

Weclome!

Okay, does anyone think Delta will make it through its problems?

Yes, Delta Air Lines (NYSE: DAL) will make it through the problems -- but that is thw wrong question.

The right question, as an investor, is whether the current issue of stock will make it through the bankruptcy proceedings -- and the answer to that question is emphatically negative. When a compnay exits a Chapter 11 (reorganization) prooceding, it nearly always cancels all outstanding shares of stock and issues new stock to its remaining creditors in proportion to their claims. If there were evan a penny to divide among the stockholders after paying off the creditors, the company would not be bankrupt.

The bottom line is that you can hold onto your SkyMiles, but get whatever you can for any stock that you hold because it's basically worthless now.

Norm.
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