First off worth noting in over 15 years of trading I have never witnessed a scenario where bonds were actually removed/deemed worthless, yet common equity was still trading and/or company not discharged from case.
The 1099's will hit in less than 2 weeks now. If the 2012 bonds do in fact NOT show up on this form, as a recognized sell transaction as zero or worthless transaction this will make things very interesting.
EVEN IF the 2012 bonds DO IN FACT show up in the 1099 as a worthless transaction and the capital loss is realized; this can always be reversed down the road and a new 1099 issued. I have seen amended 1099's come out as late as 7 months later in the following August. Reality is it could be later than that as well.
Point is over the years there have been scenarios that were later reinstated or reversed. So bottom line is -- this mess is still long from being definitively over regardless of what happens in the next couple weeks. Cheers.
Regardless of where you stand on BB - can anyone find any corp case in BK that lasted what - now going on 6 years?