What happens when a public company files for protection under the federal bankruptcy laws? Who protects the interests of investors? Do the old securities have any value when, and if, the company is reorganized? We hope this information answers these and other frequently asked questions about the lengthy and sometimes uncertain bankruptcy process.
The claims trading industry has only grown in the nine years since the publication of this quote. Indeed, it is common in "mega" Chapter 11 cases to see on the docket hundreds, if not thousands, of "claims transfer notices" filed pursuant to Federal Rule of Bankruptcy Procedure 3001(e), and that is only a small set of the claims trading activity.