Chapter 11 bankruptcy, proof of claim as equity shareholder (proof of interest)


A company of which I am a shareholder entered into chapter 11 bankruptcy.

It’s an odd situation as this is looking more and more like they are the rare 10% that will actually emerge from it.

I have received a letter from my broker on behalf of stretto regarding the filing of a proof of claim. I thought this would be for creditors rather than equity holders.

Online it says equity holders can file a “proof of interest” but I cannot find a way to do this only to file for “proof of claim” as per the letter.

Proof of claim doesn’t really make sense at all to me, what would I claim? The dollar value I paid for the shares? The value of the shares as of the date of bankruptcy filing?

My main focus is to make sure that in the event the company finds a way to continue either with its existing shareholder structure or a new one that I am able to retain my fair shareholding as per the agreements they make.

Thank you in advance for any advice you might have.


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