I currently own stock in NWACQ.PK – According to research on chapter 11 bankruptcy, I have found that if and when a company emerges from chapter 11, its Over The Counter stocks may be rendered worthless. Is this true, and if so, will there be an advance warning of when the company will officially go public again so that I could sell the stocks in time to retain my investment money?
If the company emerges from bankruptcy, that means the bankruptcy court has determined that the company has settled its debt. Stock shares (like NWACQ.PK) are at the very bottom of debtors (below banks, bonds, etc.) and so are most likely dissolved, i.e., considered worthless. If the company goes public again, it will be considered a new, different companies and as such, will be issuing new shares. So, overall, unless Northwest manages to do one of the very, very few companies that manage to keep their stock, your investment is gone.
