I invested in a public company that is now being traded on the pink sheets. This company is still in operation. Is there any chance that in a few years the stock price can come back off the pink sheets? Are there any examples of companies who have recovered from a chapter 11? If so, what happened to their stock price?
Many companies have successfully emerged from bankruptcy protection (think the entire US airline industry, Delta, United, others). The problem is that debtors are first in line for assets in any type of bankruptcy reorganization. After the debtors have recovered their assets (often for pennies on the dollar), there is usually nothing left for the equity holders. Chances are, if the company who's stock you own is able to emerge from bankruptcy, your stock will be voided out, and will be reissued to the bond holders and other debtors. In effect, the bond holders will become the new stock holders.
