I don't pretend to know what will happen. Check out the NY Times business section. Search for Exide for archived news releases. The last time they filed it took months. At this point I don't care but would like to see the BK judge put them through hell. The system makes it easy for poor management to run a company into the ground as they collect their over inflated salaries.
Hey srosone (my twin!)... I couldn't pull the trigger at .18... Maybe if I was smart I would have had a sale order in for .23 instead of .26, so it looks as if I will be riding this up or down also... Good Luck to all of us that were too stubborn to take our licks. Miracles do happen, just ask Tim Tebow.
I didn't read anything about their overinflated salaries. But I did read that it would cost 100's of millions of dollars if the burden of clean-up is thrown onto the public instead of the xide co.
I was told in tax courses that the government attempts to accomplish social aims in designing federal taxes. This burden on Calif. tgaxpayers would be no social benefit. Another company would not have investors to clean up that mess at Vernon, nor want to put their good name on the line. Politically, leave well enough alone will be the decision, and the people at Xide will stay employed, accomplishing a social aim (I BELIEVE THAT POLITICS AND COMMON SENSE WILL PREVAIL, WHY GET A NEWBIE INTO VERNON)
If shares are cancelled which I think is likely, you are correct. Shorts get the ultimate payday. But there have been cases where a reorganization was pulled off without some debt/equity swap and the share price actually rose substantially. Plus, unless you are an arbitrageur that has just gotten in for the ghoulish conclusion, most shorts would prosper better by covering, taking their gain from the entry point and avoiding what can be a long, drawn out process by which common shares eventually get euthanized, cremated and their ashes sprinkled over Vernon, CA or Milton, GA where the death spiral originally and conclusively began.
I actually feel bad for investors and longterm employees in this major and once very proud company. But a 20 year cycle of revolving losers at the top has exhausted the energy and future of Exide to a point in lead-acid where its ability to survive in any meaningful sense is highly questionable. It's a very tough business. But it is an impossible business when driven by crooks, idiots, newbies, egomaniacs and dysfunctional fiefdoms and national rivalries in the Euro sector that pit one Exide company against another Exide company for dominance in multi-national clients. Throw in the utter lack of technology leadership and the childish and as yet unresolved corporate rivalries between Exide, GBC, Prestolite, Chloride, GNB, Tudor... ad nauseum ,and the silly nationalistic biases in an unblended and non-integrated boullaibaise of American/British/Canadian/French/Scandinavian/German/Italian distrust and totally dysfunctional management.
Goodbye, Exide. May the ghosts of Fred Daniels and Harry Noznesky haunt your dreams as you go through the death throes of the final countdown.