What about the stock that was owned previously? Did the buy out the stock holders? If not, than don’t they still own stock?
Shares of Motors Liquidation Company (PINK: MTLQQ) are rallying in trading today. The penny stock reached a high of $0.27 in mid-day trading, and at last check, it was up 15.60% to $0.252, with volume up from a daily average of 4.44 million to 10.80 million.
Motors Liquidation Company, the old General Motors, filed for a bankruptcy under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Code for the Southern District of New York. As the new General Motors prepares for its IPO, FINRA, the largest independent securities regulator in the U.S. is warning investors not to confuse shares of the old GM with the IPO. None of the holders of old GM shares are entitled to receive newly issued shares in the new GM.
Stock holders got wiped out. What’s worse they even screwed the bond holders.
It's an interesting story. Once upon a time, the United States was a country in which the rule of law mattered. Looking at the GM bailout, you can tell that the rule of law was a very long time in the past.