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CHICAGO - Kmart Holding Corp. said on Friday it added new information to its Web site to explain to angry shareholders why their stock was wiped out after the discount retailer emerged from bankruptcy, Reuters reports.
The updated question-and-answer section tells former shareholders there wasn't enough money left over for them after Kmart paid off its creditors -- a common occurrence in bankruptcy cases.
The old common shares of Kmart Corp. were canceled on Tuesday as the retailer emerged from Chapter 11 about 15 months after it filed for bankruptcy. The company issued new stock in Kmart Holding Corp., which is owned by some Kmart creditors, but not former shareholders.
Under U.S. bankruptcy law, shareholders are last in line for payment and often receive nothing.