MF Global Holdings Ltd., the company run by former New Jersey Governor Jon Corzine, was nearing a deal late Sunday night to file for bankruptcy protection as soon as Monday and sell assets to Interactive Brokers Group.
GGP was an illiquid mall owner which could not pay its
debts. It had sizeable Assets higher than all its
Liabilities. They declared Chapter 11 protection.
The stock went as low as .40s before it became clear
that the Common stock would survive. Now it's over 15 dollars. Yes, the same common stock.
They sold some of their assets to bring down
their debt during bankruptcy.
This looks like a Lehman type of deal but they sure appear to have assets in excess of debt here so perhaps the bankruptcy is just to facilitate doing the deal quickly. Maybe. I don't honestly know.