|
A share is a claim on the assets of the company. Debt is also a claim on the company. Debt always comes before equity so all assets will be liquidated and distributed to the debt holders and since there isn't enough to satisfy their claims, all ownership claims (e.g., outstanding stock) will be terminated/voided.
I'm sure there is a real rule about how to treat an untradeable stock but, in time, it really will be worthless. It may be possible to "surrender" one's claim/"abandon" the claim to make it official - so you wouldn't have to wait ten years for a court to stamp it worthless. Its worth looking into.
__________________
♠ ♥ ♣ ♦
|