Thursday, March 12, 2015

"RadioShack Statement Regarding Stock Price and Trading Volume" $RSHCQ

Classic press release from Radio Shack:

FORT WORTH, March 12, 2014 — In light of the trading volume in its common stock at prices in excess of $0.20 per share, RadioShack Corporation today reiterated its belief that there will be no recovery for any equity holder in its pending Chapter 11 proceedings.

Equity holders of a company in Chapter 11 bankruptcy generally receive value only if all claims of a company’s secured and unsecured creditors are fully satisfied. RadioShack said it believes that the claims of its secured and unsecured creditors will not be fully satisfied, leading to the conclusion that RadioShack common stock has no value.

3 comments:

eah said...

Why did they bother? Is there some legal requirement that they do that? Maybe the "secured and unsecured creditors" could get a bit more if they fired the person doing that sort of thing.

Anonymous said...

Well, that took care of that, now, didn't it? Cut in half today...

eah said...

OT

Quicksilver Resources (KWK - ?) filed for Ch 11. Seem to have a good deal of debt out there.