Personal Finance

Shares of Nortel After Sale?

  • Last Updated:
  • Jul 31st, 2009 2:13 pm
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[OP]
Deal Addict
Sep 8, 2007
1170 posts
12 upvotes

Shares of Nortel After Sale?

Hi guys

As you may be aware, Nortel is selling it's individual divisions as part of its's bankruptcy proceedings.

So, what will happen to the shares of Nortel once the proceedings are over and the company is no more? Will investors lose everything? I know a few people, including myself that is holding to a few shares of Nortel... =(

Any input is appreciated.

Thanks
9 replies
Member
User avatar
Apr 18, 2008
352 posts
3 upvotes
Niagara Falls
I'm pretty sure the price of the shares will become 0.

They have negative equity. If you're lucky, you might get a few pennies per share but I doubt that.
Jr. Member
Jul 10, 2009
179 posts
1 upvote
bayview
get the physical share certificates call your broker, when bre-x went under they were worth a pretty penny. its historical nostalga
Sr. Member
User avatar
Feb 6, 2008
664 posts
18 upvotes
After creditors, bond holders, and preferred share holders, there is most likely nothing left for the common share holder.

I guess it wouldn't make much difference even if you sold it earlier. The commission probably costs more than the proceedings haha.
Jr. Member
Aug 8, 2006
103 posts
4 upvotes
Like other posters said ... zero.
[OP]
Deal Addict
Sep 8, 2007
1170 posts
12 upvotes
Oh well, can use this as a capital loss.
Newbie
Mar 1, 2005
94 posts
3 upvotes
Vancouver
Do I have to actually sell the shares to claim the loss? What happens if I haven't taken any action and the shares can no longer be traded, can I just claim a loss in that case?
Deal Addict
Dec 28, 2006
2373 posts
63 upvotes
Saskatoon
tao wrote:
Jul 28th, 2009 8:03 pm
Do I have to actually sell the shares to claim the loss? What happens if I haven't taken any action and the shares can no longer be traded, can I just claim a loss in that case?
You will have to sell unless you meet the requirements of filing an election under Sec 50(1) of the ITA to create a deemed disposition. Since Nortel is not technically bankrupt but is undergoing court supervised restructuring under the Companies Creditors Arrangement Act you many not meet the 50(1) requirements.


50. (1) Debts established to be bad debts and shares of bankrupt corporation
Deal Addict
Sep 8, 2004
2197 posts
The shares of nortel will continue trading in limited volumes probably at lower price than today, between existing shareholders and speculators even after the company's unwound. Enron's still trading, as is Lehmans.

At the current price level, there should be no hurry to exchange the shares for a certificate (I dont even think the ticker symbols is NT anymore), or to sell the shares unless you want that capital loss right away.

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