Prudent Capitalist
2 months ago
LMFAO! What evidence can you possibly point to that BBBYQ is somehow "in the process of restructuring?" There is absolutely nothing left to restructure. It was a total liquidation bankruptcy, and all assets of any potential value were sold off in the multiple auctions, including the Bed Bath and Beyond name and IP, as well as any leases with any value, as well as the Buy Buy Baby asserts, trade name and IP, etc. Overstock is operating Bed Bath & Beyond under that name within its umbrella, having purchased the assets, etc. Everything was liquidated and the shares were cancelled. There is no ticker left and nothing to restructure. SMFH
Just like with this ticker......... that is in the process of restructuring.
Prudent Capitalist
2 months ago
LOL! Welcome to IHUB and Happy Birthday! You might want to conduct some due diligence. In a liquidation bankruptcy where the shares are cancelled and deleted, which was the case here with BBBYQ, an investor holding a short position never has to cover and does not owe anything to anyone. There is a wealth of information available on these accepted and well-known facts.
What happens when an investor maintains a short position in a company that gets delisted and declares bankruptcy? The answer is simple: The investor never has to pay back anyone because the shares are worthless.
Companies sometimes declare bankruptcy with little warning. Other times, there is a slow fade to the end. A short seller who didnโt buy back the stock before trading stopped may have to wait until the company is liquidated to take a profit.
However, the short seller owes nothing. That is the best possible scenario for a short seller. Eventually, the broker will declare a total loss on the loaned stock. At that point, the broker cancels the short sellerโs debt and returns all collateral.
https://www.investopedia.com/ask/answers/maintain-short-position-delisted-stock/
Prudent Capitalist
2 months ago
Yep. Overstock bought it all out of the Bankruptcy estate and is now operating as Bed, Bath & Beyond. Totally separate company. And the Buy, Buy Baby assets, name, trade names and goodwill, and intellectual property were sold separately out of the Bankruptcy estate, and those assets also are now operating under new ownership out of a completely separate entity. What was BBBYQ is gone forever, and the shares no longer exist. But, some of the APES and meme stock clowns just don't seem to understand that.