is judge required by law to distribute equity

This is a discussion on is judge required by law to distribute equity within the Business Bankruptcy forum, part of the Starting a Business category; If there is shareholder equity available as a company is nearing the end of chapter 11 bankruptcy, is the judge ...

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Old Aug 14th, 2009, 08:46 AM   #1
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Default is judge required by law to distribute equity

If there is shareholder equity available as a company is nearing the end of chapter 11 bankruptcy, is the judge required to award it to the holders of common stock?

I realize this would be an unusual scenario, as the vast majority of companies have no equity available, but it appears that some companies that are currently in chapter 11 will have equity available when they exit.

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