What happens when a stock is delisted

When I say Large Cap I mean that in Canadian terms.
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!!!
D.
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If you are a stockholder in a bankrupt company, you usually won't get anything for your shares. My stock broker has bought my shares when that occurred for $1, allowing me to get the stock off the books and take a loss when in a taxable account.
-- Ron
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Common share holders get zip.
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Shares may be sellable in the OTC market (in the US). But probably not for very much, and it could take weeks to find a buyer.
General Motors and Lehman are an example. There is still some speculative play in their old shares, keeping them at a non-zero value. Its extemely unlikely that there would be any dividend leftover for shareholders after liquidation and creditor payoff.
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-- Delisted stocks are often traded on the "pink sheets" after being delisted. Type in "pink sheets" on Google for an explanation of how that market works. some brokers may not deal in pink sheet stocks.
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