Will DAL stock be worth anything after bankruptcy?

[LaramieJC]

My father worked for Delta until last year when he took early retirement. He sold his stock soon after, but my mom (who received about 700 shares when my parents divorced) has stubbornly held onto her stock all the way to the end. I told her repeatedly to sell it on the way down but now that the airline is in bankruptcy I was wondering if the stock will be worth anything if the carrier emerges from bankruptcy sometime in the future. I have heard that if this happens the airline will re-issue stock and all old stock will be null and void. Is this true?

Thanks,

JC

[squiffy]

Everything I have read indicates the stock will be worthless.

Bankruptcy means the company does not have enough to pay it's debts, even if it were to liquidate or sell off all of it's assets. The creditors (bondholders/lenders) are still owed money. They have not been repaid.

THere is no equity left in the company. Shareholders only get a share of equity. If there is any cash left over after liquidating all assets and paying off the creditors.

In bankruptcy and in secured transactions, there is a priority of payment. Bondholders and lenders get paid off first. Secured parties who have filed their liens and UCC financing statements get paid off,etc. Then shareholders.

DAL, of course, probably will not sell off it's assets because they are worth more to creditors if DAL is kept a going concern.

The bankruptcy court will force layoffs and wage and pension reductions, etc. And lenders will lose money. Shareholders lose everything.

Since 9/11 people have not been flying as much as they used to. There is simply no economic need for all the planes, pilots, and support people, period.

Many of these airlines are poorly run. Many of the employees are overpaid. And there simply isn't enough business to justify keeping all these planes flying.

[squiffy]

WSJ article today says DAL has lost 10 billion dollars since 2001. And with additional layoffs will have shrunk from 76,000 employees to 43,000 or so.

How can there be anything left for shareholders if you operate for 4 years and LOSE MONEY. Not 100 million or 200 million. Not even 800 or 900 million. Try 1000 million (thats one billion). NO Ten times that.

[lastsamurai]

If you want hedge the stock i suggest to buy puts.

[kagame]

DONT SELL IT HERE!

its worth nearly nothing but has a big upside, delta is really trying to fix their business model

my uncle worked for delta for about 35 years and is part of delta technology now, spun off, a paid consultant ABOUT delta

he thinks theyll make it back

im going to buy some soon, just trying to make sure it wont stop being traded as a symbol