Categories: Investor Definitions

Item 1.03 – Bankruptcy or Receivership | 8-K Explained

If a company becomes the subject of a bankruptcy or receivership court filing, that must be disclosed. Future 8-Ks may outline the company’s plan for reorganization (under Chapter 11) or liquidation (under Chapter 7) and the court’s confirmation of the plan. Investors should look at the reorganization plan for information about whether the company’s common stock is likely to be canceled and when the company expects to emerge from bankruptcy.

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