What happens to common shareholders if Heddle deci

What happens to common shareholders if Heddle decides to declare Chapter 11 ?

As of right now only Heddle, Heddle Marine Inc, and possibly John Bordynuik (with the $400k revelation yesterday) could be considered the only senior lenders to the company.

If Heddle decides to not invest in financing anymore, and it does not look that way, and they do not obtain legitimate outside financing it Chapter 11 reorganization surely is an option for some very good reasons.

Remember, reorganization gives a company many new avenues to explore by it's very nature.

It allows the company to stay public,
- they can renegotiate or look to eliminate any contracts in place
- they can reorganize and re-establish a share structure to their liking through a legitimate IPO ( all these financings by issuing millions of shares are not going to end if there are no sales, it will only get worse over time),
-if the NSS theory is true it automatically removes every aspect of that issue immediately.
-, and they would only have to issue new shares to themselves and other creditors upon emergence.

Of course all common shareholders would be screwed with cancellation of existing shares, but when that one issue is weighed against the numerous benefits described above it certainly becomes a more attractive option as time goes on with no sales.