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If a company is still in Bankruptcy can the shareholders of that company take over the corporate shell change the name and merge another company into it?
Wiki User
∙ 15y ago
A Corporation in bankruptcy is really operating under the control of the Court and obstensibly...the creditors committee. The shareholders (or management) can still do many things, but really only with the consent of the others.
Can the company take over, buy, merge with, etc another - sure. Change name - sure - it is frequently part of the re-org plan if especially if the factors leading to the BK gave it a bad one.
Financial restructures and corporate mergers and dissolutions are frequently part of what needs to be done to get the company operating again. The shareholders, generally, lose all their value too....thats what happens if your asking any creditor to take less than they are owed..they get to take your ownership interest...or you have to pay them in full. which once again means restructure and do things that lessens the value of your ownership...otherwise there is no reason to be in bankruptcy.
Your question itself shows you may not understand the SHAREHOLDERS are the corporation (they aren't creditors, they are actually the debtors) ...they can't take it over from themselves...the bankruptcy is protecting the corp and them from the creditors....generally, if there was a way to refinance and pay the creditors without giving up their ownership...that would be done without the BK.
Wiki User
∙ 15y ago
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