Ticker symbol for those who care is CGS.TO or CGS-T (Canwest Global). I own this stock in a Tax-Free Savings Account (TFSA) so I cannot claim losses against my income on an income tax return. It is a very small portion of my stock holdings and is the only "risky" stock I have ever purchased.
This stock was delisted from the TSX (By the stock exchange board) Oct. 6 because the company has filed for creditor/bankruptcy protection. The bondholders are trying to force a sale of assets and the company is offering bondholders shares in return, like what GM did.
What happens in cases like this? What happens to my current shares? Since I cannot sell them at this time is it likely my shares go up in smoke? The scenario as I see it is a new company will be reformed after an assest sale but will my shares transfer tot he new firm? If the company is insolvent after protection runs out then what? Maybe the company privitizes during protection, what happens to shares then?
Can anyone present me with some scenarios they have been presented with in this sort of situation?
Thanks for the convo!!!