Jeez guys lots of misinformation on here. First of all, XIDE is not even in Ch.11 yet! They filed a PETITION for Ch 11, but the process of being granted Ch11 could take some time! Secondly, even if they are granted it, there is no way of knowing what will happen to the common. Not to keep beating a dead horse but look at AMR Corp- a prime example of what can happen to the common. Of corse that is an extreme and unusual scenario but I'm just saying, who would have predicted that AMR would come out of the .30's and have a price target of $10? The answer- At the time it was in the .30's- nobody!
The is no workable analogy in comparing American Airlines to Exide. AMR's primary competitors all re-organized and shed legacy debt and benefits burdens. AMR was at a severe cost disadvantage. Exide bought most of its competitors and its primary domestic competitors, JCI and ENS have comparable cost structures other than maybe better managed environmental and SGA costs. Exide's SECOND bankruptcy results from a failed business plan and an apparent inability to manage its components.
A re-organized Exide without a total housecleaning beginning with the ineffectual board of directors will only fail and file again, IMO.
What are you guys talking about? The shares still trade! you didn't lose everything. It's a CH 11 not 7. This company still has value! I got in at 23 cents hoping that the BK was just talk, but know that even if the file 11 the company is still worth more than 23 cents per share. Let the dust settle. this should go to $1 when Vernon opens. IMO.
sure - they continue trading on the Nasdaq today until moving to the Pink Sheets tomorrow (XIDEQ I guess) - you can buy or sell as much as you want. The shares will be cancelled once Exide emerges from CH11 a few months from now.
I've been through bankruptcies as a bondholder, and that is exactly the way it unfolds--the "old" common shares are cancelled upon reemergence from Chapter 11--generally with "new" shares issued to bondholders, in exchange for their bonds
they seem to continue to trade right up until that time--maybe people who don't understand that they are worthless, and short sellers who are tardy in closing out their trades
Good question, my answer is I do not know, you may want to call your broker..most likely you will continue to see them in your trading account for a while at zero dollar value. An interesting question related to your question is how do you report the loss?... if you sell before they are officially worth zero (let's say today), then you will obtain a loss (gain) and report it either as short or long term capital losses (gains) like you normally would, but what happens if you hold them and either don't or can't sell them...and their value is effectively zero? How do you report the loss?
Sentiment: Strong Sell