What happens to Delta Airlines stock after re-org?

[Newbie]

What would happen to existing delta stock after re-org ? When will they offer new stock as stand alone out of bankruptcy airline. Any help would be really appreciated. I'm glad that i found this forum. I was very worried with 2000 shares of delta i have. I don't wanna lose anything. that is all the money i have.

thanks

[aiki14]

I hate to be the bearer of bad news but your shares are worthless.
From the Delta website:
Trading in Delta's common stock was suspended by the New York Stock Exchange shortly after Delta's Chapter 11 filing in 2005. The stock was delisted shortly thereafter and now trades in the "over-the-counter" market on the "Pink Sheets" (www.pinksheets.com). The new trading symbol for Delta's common stock is OTC: DALRQ. Under the proposed plan of reorganization, current holders of Delta common stock would receive no distribution, and the securities would be canceled upon the effective date of the plan. Delta has indicated for some time that the company expected its common stock would not have any value under any plan of reorganization the company might propose, which is not uncommon in Chapter 11 proceedings.
http://www.delta.com/about_delta/del...dex.html#value

[White Rabbit]

Newbie,

I think aiki14 is absolutely correct. This happened to me with Global Crossing and I still believe the original investors were "burned and pillaged" by the Mongol hordes. Global Crossing came out of Chapter 11 as a "new" company, actually purchased by another investment group. Original stockholders lost 100%. Now GLBC trades between $14 and $26. This is where I learned the hard way (as a long term investor), that you need to follow your portfolio very closely. If the fundamentals change "get out", take your losses and don't fall in love with any stock. Saying that, I have held some of my stocks for over 30 years with fantastic growth and profits example: AT&T.

Sorry about your Delta stock.

Hope you have a better 2007
Wabbit

[Newbie]

Thank you all for your help. I really do appreicated your help. I'm hoping i will do OK now that i found this forum. I'm really very blessed to stumble on this forum with all these knowledgeable and helpful individuals.
I wish you all Happy holidays and prosperous 2007.

[chinaman711]

The only thing that will save delta shareholders is a buyout imo and of course delta is saying NO. They will come out much better if they go under as the shareholders will end up with nothing and bond holders will end up with pennies. JMHO and good luck as i have seen this too many times. The good old american way

[aiki14]

Chinaman, The bonds are real questionable at this point, they bailed on the interest payments way back and the principle is in doubt due to the serious lack of capital. I don't know what their senior debt is (most likely equipment leases), but the bonds are not it.
As an investor in common stock folks should realize they are the absolute last on the list to get payed. Bankruptcy is the reorganization of debt and the common stock is not considered debt, so even if the company finds a ton of cash they would never be under any obligation to the common stockholders.