What happens to my stock when a company emerges from bankruptcy?
I own stock in a company that is getting ready to emerge from bankruptcy, with a new stock symbol. Will my stock be converted into the new stock symbol or stay the old symbol? Will my current stock be worth the same price as newly issued common stock? What will happen to my shares?
Kaiser Aluminum and United have just exited bankruptcy. There is a lag time for distributions to the former accounts and you can find it on MarketWatch.com. Kaiser will be distributed on July 28th and then we will find out how many shares of the new company KALU are worth of our old stock KLUCQ. There should be like a 700:1 ratio or so, according to my math. No one knows until the distribution date.
What that date is for United, I don’t know. But our shares do not just disappear. They are still worth something, don’t worry. Your account will be updated on the 28th with the correct amount of shares and proper value. I just wish it were a 1:1 swap! Wouldn’t that be nice?
Best of luck to you!
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