You’re right Allen, Chapter 11. However they only come out alive if they have a business plan that the secured debt holders and banks believe in. Without a viable business plan they may end up Chapter 7. Either way they still seem on the road to extinction (or name buyout) to me. Look at their record.
I read a crazy article the other day suggesting that you might be able to make a quick 30% gain in a few days by buying Kodak stock AFTER they announced bankruptcy. That sounds nuts on the surface since the stock holders are the first to get wiped out in bankruptcy. However the article suggested that the stock price in bankruptcy cases typically bounce up shortly after the announcement as all the people who were short before the announcement have to “buy” to cover those short positions. All that “buying” action drives the price of the shares up. The old supply vs demand thing.
The logic seems plausible to me, but the risk vs reward doesn't strike me as attractive; besides you get killed in commissions trading penny stuff. EK is at 55 cents right now, it will be interesting to see what it does in the next few days. Obviously nothing you want to buy and hold!