Chapter 11 is for reorganization. Chapter 7 would be liquidation.
They might be back.
Yep, that's what Owens Corning did when I worked there. All that asbestos liability. Now they're out of Chapter 11 and doing quite well, it appears. Did take 2-3 years longer to re-emerge from Chp. 11 than they had hoped, but better late than never.
They might be back.
There stock is under 50 cents today, a year ago it was in the 10 to 12 dollar range, four years ago it was over 35 dollars.
Back in 2002 when K-Mart filed for bankruptcy, its stock was under a dollar a share. K-Mart is now traded as Sears Holding and it's stock is around $100 per share and has been nearly double that in the past year.
In short, it may not be a horrible idea to buy a couple hundred dollars worth of Sharper Image stock.