My son Ben flies for Delta. He took a pay cut to help his airline survive. Meanwhile, as a loyal father, I had bought some feelgood Delta stock, and put it in my pension fund.
When word came out that Delta would emerge from Chapter 11 (a reorganization) having become profitable again, in early May, I was horrified to learn that my stock would be “cancelled”. Just like that, kaput. I thought that a stockholder would retain some interest; after all, stockholders are creditors too, albeit at the bottom of the heap, but just look at accounting principles. Residual value in the name Delta perhaps?. While I now understand why, having read the following download, I don’t understand the logic or the law.
see Chapter 11 bankruptcy info
Meanwhile, there will be a new board, a new stock exchange listing, and new stock, some of which will be owned for profit sharing by the pilots. Wonder how the older retired pilots who may have held the older stock feel. I guess they are discovering the true meaning of bailing out (without a parachute, golden or otherwise – see above).