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When bankruptcy is filed, here’s the blunt truth for shareholders

Holders of a stock can be left with important decisions to make when a company they are invested in files for bankruptcy protection.



As the global economy continues to take new shape in its recovery from the Covid-19 pandemic, many companies are still reeling from the high costs and supply shortages the health crisis triggered.

And a significant number of them are filing for bankruptcy.

Related: Another company files for bankruptcy and Dave Ramsey has words

Major bankruptcy filings in 2023 included the working space company WeWork in November, drug store retailer Rite Aid in October, and Bed, Bath & Beyond in April.

The trend has continued in 2024. In fact, telecom company Airspan Networks Holdings  (MIMO)  filed for a prepackaged Chapter 11 bankruptcy in Delaware on March 31.

A lot of the news around bankruptcies involves how companies are restructuring their debts or going out of business entirely. But if a company that files for bankruptcy has a stock that is publicly traded, the question of what happens to shareholders is worth examining. 

In Airspan's case, existing holders of stock have been given two options. One is to receive their pro rata share of $450,000. The other is to elect for warrants instead of cash. But if more than 150 shareholders decide to take the warrants, no warrants at all will be given.

A pro rata share is the cash value of a proportionate number of owned shares based on the determined total value.

A warrant is similar to an option, where the holder can purchase a security at a specific price and quantity at a future time. But unlike options, warrants are issued by a company rather than a central exchange.

What bankruptcy means for the people affected

The thought of bankruptcy is scary for companies, their employees and shareholders.

The companies themselves would enter a reality where they are forced to ponder their very survival.

Employees, naturally, wonder about the security of their jobs.

The impact on shareholders of a company filing for bankruptcy has a few layers of complexity.

In Chapter 7 bankruptcy, a company is simply going out of business. It sells its assets to pay off debts. Shareholders are left to split what's left, if there is anything remaining at all. If there is not, shareholders can get nothing.

When a company is considering filing for Chapter 11 bankruptcy, it is likely looking to restructure and stage a comeback. If shareholders are brave enough to hold onto their shares during this process, which is risky, they at least stand the chance of making some money back.

For example, car rental company Hertz  (HTZ)  filed for Chapter 11 in May 2020 as the Covid-19 pandemic wounded the travel business generally. While the stock has struggled recently, the company did come out of bankruptcy in July 2021.

Employees are pictured pondering the bankruptcy of their company, peering out the window of a building.


In bankruptcy events, shareholders are last in line

When a company goes bankrupt, hanging on to its shares is dicey business. Shareholders could wind up with little or nothing, but they may be rewarded for their patience. 

In the short term, the stock is probably already down at the filing and is destined to stay that way for a while. But in the long term, there may be hope for a revival.

Shareholders are the last ones to be considered for payouts. First to get any money from liquidated assets or cash advancements are secured creditors such as banks holding mortgage or equipment loans, for example. Unsecured creditors, including banks, suppliers and bondholders are next. Then come the shareholders.

"The stock could very well become completely worthless," writes The Balance. "But there’s always a chance that the company could emerge from bankruptcy stronger and stock prices may rise. In the short-term, however, the stock price is likely to stay very low during bankruptcy and immediately after."

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Landmark advances in employment reframe the outlook for people with disabilities in post-pandemic era

East Hanover, NJ – April 2, 2024 – A recent commentary published in The Journal of Spinal Cord Medicine highlights the unprecedented upward trend in…



East Hanover, NJ – April 2, 2024 – A recent commentary published in The Journal of Spinal Cord Medicine highlights the unprecedented upward trend in employment for people with disabilities, accelerated by the COVID-19 pandemic’s economic recovery phase.

Credit: Disability: In/ Jordan Nicholson

East Hanover, NJ – April 2, 2024 – A recent commentary published in The Journal of Spinal Cord Medicine highlights the unprecedented upward trend in employment for people with disabilities, accelerated by the COVID-19 pandemic’s economic recovery phase.

In ”Employment and people with disabilities: Reframing the dialogue in the post-pandemic era,” (DOI: 10.1080/10790268.2024.2315927) published on February 22, 2024, the authors examine the confluence of factors contributing to the recent record-high employment levels among people with disabilities. This trend has been supported by a favorable labor market, evolving employer attitudes, and the adoption of inclusive workplace practices. A series of National Trends in Disability Employment (nTIDE) reports issued by Kessler Foundation and the University of New Hampshire Institute on Disability explored the contributions of diverse subgroups within the disability community to this positive shift.

A contributing factor was the rapid adaptation by employers to the acute labor shortages caused by the pandemic. Innovations in recruiting, hiring, training, and employee retention have expanded opportunities for people with disabilities. Notably, a 2022 Kessler Foundation survey revealed significant shifts in supervisors’ perceptions towards more inclusive hiring practices and accommodations, signaling a sustainable change in workplace culture.

The authors also address the uncertainties about the longevity of these gains as the pandemic’s direct impact wanes. The widespread adoption of remote work, recognized as beneficial for many employees including those with disabilities, faces a future of mixed prospects as workplaces readjust and offices reopen. Yet, evidence suggests remote and hybrid work arrangements as viable, ongoing options that will continue to support employment equity for people with disabilities.

The article underscores the importance of continued research and policy development to extend the upward trend for employment of people with disabilities. By recognizing the achievements and challenges highlighted during the post-pandemic recovery, stakeholders can work towards further narrowing the employment gap and fostering a more inclusive economy.

About the Journal of Spinal Cord Medicine

The Journal of Spinal Cord Medicine (JSCM) serves the international community of professionals dedicated to improving the lives of people with injuries/disorders of the spinal cord. JSCM is the peer-reviewed official journal of the Academy of Spinal Cord Injury Professionals (ASCIP), a U.S.-based multidisciplinary organization serving scientists, physicians, psychologists, nurses, therapists and social workers in the field of spinal cord injury care and research. JSCM, a member benefit of ASCIP, is published six times a year by Taylor & Francis Publishing. The editor-in-chief is Dr. Florian Thomas of Hackensack University Medical Center, Hackensack Meridian School of Medicine, Hackensack, NJ, USA.

About Kessler Foundation
Kessler Foundation, a major nonprofit organization in the field of disability, is a global leader in rehabilitation research. Our scientists seek to improve cognition, mobility, and long-term outcomes, including employment, for adults and children with neurological and developmental disabilities of the brain and spinal cord including traumatic brain injury, spinal cord injury, stroke, multiple sclerosis, and autism. Kessler Foundation also leads the nation in funding innovative programs that expand opportunities for employment for people with disabilities. We help people regain independence to lead full and productive lives. For more information, visit

Press Contacts at Kessler Foundation:
Deborah Hauss,
Carolann Murphy,

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Historical patterns repeat as Bitcoin declines before halving

Quick Take With the halving event looming roughly 18 days away, Bitcoin is showing a predictable downturn. It has dipped below $65,000, marking a 12% decline…



Quick Take

With the halving event looming roughly 18 days away, Bitcoin is showing a predictable downturn. It has dipped below $65,000, marking a 12% decline from its all-time high and nearly 10% lower since the beginning of April.

In a pattern reminiscent of March, when Bitcoin reached its peak, it promptly retreated to around $60,000, experiencing a 17% decrease.

Historical data reveals drawdowns of comparable or larger magnitude preceding prior halving events.

BTCUSD: 2024 Halving: (Source: Trading View)

For instance, before the first halving in November 2012, Bitcoin experienced a 40% decline in August and a 23% drop in October of the same year.

2012 Pre-Halving: (Source: Trading View)
BTCUSD: 2012 Halving: (Source: Trading View)

Leading up to the second halving in July 2016, Bitcoin encountered a 22% decrease in June, followed by an 18% decline in August after the halving.

2016 Halving: (Source: Trading View)
BTCUSD: 2016 Halving: (Source: Trading View)

The 2020 halving in May was followed by an anomalous 53% crash attributed to the impact of COVID-19. However, Bitcoin had fully recovered from the significant crash within the same month.

Meanwhile, Bitcoin experienced a 14% decline just before the halving.

BTCUSD: 2020 Halving: (Source: Trading View)
BTCUSD: 2020 Halving: (Source: Trading View)

Though this volatility may concern some investors, it aligns with the characteristic fluctuations observed during halving periods.

The post Historical patterns repeat as Bitcoin declines before halving appeared first on CryptoSlate.

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What is a secondary city and why do people want to live there?

A new development in Nashville highlights many real estate seekers’ interest in secondary cities.



While the initial rush of pandemic-related movement saw large numbers of people move from the city to the suburbs or even rural areas, the years that followed saw a different kind of trend.

The seemingly contradictory phenomenon of returning interest in urban living and skyrocketing cost of real estate in major metropolises has fueled real estate interest in “secondary cities." While official definitions will vary, the term is generally used for urban hubs of fewer than two million residents that have been seeing significant economic and population growth.

Related: These Are The Cheapest Beach Towns To Invest In Now

American cities such as Phoenix, Salt Lake City, Boise, Portland, Austin and Nashville would all qualify. According to data from the Nashville Area Chamber of Commerce’s Research Center, the latter has been seeing an average of 98 new residents for each day of 2022.

As a result, developers have been rushing to start new projects that fit a growing population as well as high-earning professionals who come from more expensive cities in search of better bang for their real estate buck.

A photo shows a furnished apartment at Memorial Wedgewood Houston in Nashville, Tenn.

AJC Partners

‘All the benefits of primary cities but more real estate space’

“They are cities that can offer almost all the benefits of primary cities like New York, Chicago and Los Angeles but they also offer a smaller, more intimate community and typically a lot more additional real estate space,” AJC Capital’s Chief Strategy Officer Ruben Navarro told TheStreet.

More Travel:

One such project from Adventurous Journeys Capital Partners opened in Nashville on April 1. Built inside the city’s Wedgewood Houston neighborhood, the new Memorial Wedgewood Houston is a 273-unit building featuring studios as well as one- and two-bedroom apartments in a community-style setting equipped with outdoor and indoor lounge space, a pool and sauna, pickleball courts, a putting green and ping pong spaces and an outside fire pit.

The development is rent-only (residents are tenants renting apartments from AJC) and designed toward those who move to Nashville from other cities looking to live in a place where they can meet other residents and find community as they decide whether or not to make the city their permanent home. Similar Memoir developments are currently in the works for other secondary cities such as Portland and New Orleans — both developments will be open to rent in the coming year.

Are things within walking distance? That often makes or breaks a secondary city

According to Navarro, many of the people coming in are also specifically looking for urban village-style living in which they can find restaurants and retail establishments within walking distance from their home in a way that mirrors the walkability of downtowns in major cities (how much one will need to transition to a car for everyday living is a major factor in many people’s decision to move from a primary to a secondary city.) 

“We entered Nashville in an effort to do restoration and reuse of gorgeous historic stock mill and over time we have amassed more than 18 acres of mixed-use project land within the Wedgewood Houston neighborhood,” Navarro said. “We created a brand called Westwood Village and within that village we now have more than 1.6 million square feet of restaurant, hospital and residential space.”

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