RE:Bankruptcy 101Thank you Mr. Duck. That may be true. However bankruptcy is a very nuanced business with many possible twists and turns. It is not black and white for all.
In the case of Tribune, a huge complex multi media Fortune 500 company prior to 2007 with many securities, certain bond securities that were issued under previous administrations in the 20th Century were not fully understood and they had some interesting wrinkles. I will cut to the bottom line: in order to close out the bankruptcy they needed to hold all the bonds and this they had to be bought back at any price. That is why they soared from pennies to a high of $28. Weird and an obviously an abnormal situation.
With General Growth, at one time before 2008, one of the largest and most high end shopping center ops in America there securities dipped to like .10 ( no I did not have it). Well the story in the financial media was that some investor was at a Chicago health club and talking to his buddy who told him it was crazy a prime re al estate operator like GG was selling for pennies and that it will bounce back once out of bankruptcy. He bought a million dollards worth for pennies and made tens of millions eventually. Now of course these are highly specialized complex opportunities that us retail investors normally do not know about or have access to. But i keep my eyes open.
That is why I am still watching Recaf and its warrants. Maybe just maybe there could be a resurrection scenario here!