Ask A Fool: What Happens To Shareholders After A Company Declares Bankruptcy?

There's no one-size-fits-all answer to this. It depends on the amount of assets the company has, how much it owes to creditors and senior investors, and what the company's post-bankruptcy plans are.When a company files for bankruptcy, its creditors have the first claim to any of its assets. In other words, when inventories are liquidated or a company's real estate is sold off, the creditors (such as bondholders) get to recoup their investment first.

Topics:  company   bankruptcy   stockholders   creditors   common   assets   preferred   bondholders   left   
BING NEWS:
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    06/22/2018 - 5:07 am | View Link
  • Ask a Fool: What Happens to Shareholders After a Company Declares Bankruptcy?
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    06/22/2018 - 5:00 am | View Link
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