Q: Can a bankruptcy court go back and tell a corporation they have to compensate smaller stockholders

I owned stock in a oil drilling company think it was ocean rig there was a bunch I would have to call fidelity to be 100% sure. Bought the stock800-900 shares for a buck each when oil tanked. They restructured right as oil bottomed out got out of anyone who had like less than 10000 shares and now the stock is on the 20's and my first chance to be one of those real winners ended up with nothing. To me it is clear the system is rigged. They had access to cash and equity and they were able to just screw the small shareholders. Does a court ever go back or is Bernie correct "The system is rigged"

1 Lawyer Answer

Timothy Denison

Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: The court has the power to consider such repayment as you ask, but it is highly unlikely they would exercise it based on the above.

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