Ownership of the stock passes to the creditors in a bankruptcy. (well, at least in pre-Chrysler bankruptcies)
The NYT is a commie liberal dinosaur. It has outlived its usefulness. The American people will never forgive the NYT, the Boston Globe and all the other libtard news rags for lying to them about Obummer.
I understand the process but the idea of a Chapter X1 is to hold off the creditors until an attempt at a reorganization can be attempted. Part of this process includes a renegotiation of existing employment contracts. If it falls apart and liquidation is necessary then of course you are correct in that assets go to the creditors.
Financial contract law is so passe'!