QUESTION
If I should file a claim, what value should I use, current value, if any, or what I paid for the stock?
Asked on Dec 10th, 2014 on Bankruptcy - New York
More details to this question:
I have received the following documents: Notice of Motion to Dismiss Chapter 11 and Approving Mechanism for Distribution of Debtor's Remaining Cash; Notice of Entry of Order Establishing Bar Dates for Filing Proofs of Claim; Proof of Claim Form; and Proof of Interest form. I am a stockholder, not a creditor. Is there any reason I should file such a claim or should I just write off this investment?
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Without reading the notices that you received, I don't know for certain, but generally stockholders don't receive payment in a Chapter 11.
Answered on Dec 11th, 2014 at 2:39 PM
2 Awards
File a claim so you keep informed. You may get a distribution. The claim should be what was owed as if the date of the filing of the bk.
Answered on Dec 11th, 2014 at 10:19 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Depending on developments in the case, you will probably receive nothing, since as a stockholder you are an owner, rather than a creditor. (Again, unless there is something unusual about your particular stock.) You would likely be filing a 'Proof of Interest' rather than a Proof of Claim, if you chose to do so. Good Luck.
Answered on Dec 11th, 2014 at 10:18 AM
Use the current value of the product.
Answered on Dec 11th, 2014 at 8:08 AM