Asyst to stock traders: our shares are likely worthless
In case they haven’t gotten the message already, Asyst Technologies advised investors today in an SEC filing that its shares will probably be worthless before the liquidation process is over in its current bankruptcy proceedings.
The company has struggled over the last year in its ultimately unsuccessful attempt to remain in compliance with the terms of its debt, not to mention fighting off a take-over attempt by a company run by its ex-CEO and a proxy fight threatened by a major investor.
Since filing for bankruptcy protection April 24, the company says it “has noticed the continuing high trading volume” in its stock, it said today. “Asyst management confirms for investors its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios.”
The filing goes on to draw a clear simple picture for anyone who still doesn’t get it.
“Holders of common stock of a company in chapter 11 generally receive value only after all claims of the company’s secured and unsecured creditors have first been fully satisfied. In this case, Asyst’s management strongly believes all such creditor claims will not be fully satisfied, leading to its conclusion that Asyst common stock will have no value.”
