What are the risks and possible rewards of investing in Fortune 500
companies who's stock collapses down to below a dollar?  Polaroid, as
an example, obviously was sold off and continues as a privately held
company so the risk there was 100% and just about all was lost. 
United Airlines went through this but did a new stock issue after
emerging from bankruptcy.  Did current stock holders send in their
shares and get new shares or did they lose everything?  Now, this
week, Delphi is in the news preparing for bankruptcy and GM says it
will drive them into bankruptcy if Delphi goes bankrupt.  Delphi stock
is trading under a dollar.  Some people are buying a lot of it.  Do
they know something that is not being reported in the news?  Someone I
know in Michigan says their company has hired off most of the good
people from Delphi.  Is it just a wild gamble to buy the stock of
Fortune 500 companies going through bankruptcy or is there a way to
find out how it will turn out and come out after the bankruptcy with
shares that were purchased for under a dollar that rise back up to
tens of dollars as time passes.

Buying a bankrupt compnay is a crap shoot.  It is likely that you
would ose everything.  On the flipside, if it emerges from bankrupcy
in tact, you could make a killing.

In many cases of bankruptcy, the stock held by the current
shareholders is voided by the bankruptcy court.  The former debt
hodlers then become the new equity owners of that corporation.  In
sum, just because it may look like a company emerged from bankruptcy
and the stock went up, it may not be the original stockholders who are
benefiting.

Thanks for the perspective.  Just from the Polaroid and United
examples, it does look like anything can happen over the course of the
bankruptcy.

The problem is that if you sell a $1.00 stock short, then the most you
make is $1.00/share. If the unexpected happens and the stock jumps to
$4.00 overnight, then you lose $3.00/share . . .  you are playing with
loaded dice.

Delphi's court filings are available online at www.delphidocket.com
They have developed a KECP, a plan to retain key executives.
It is here:
http://media.delphidocket.com/documents/0544481/0544481051013000000000044.pdf
It says 25 executives have left since 1/1/2005
It says they are targetting 10% of the equity of the company for US
operations executives and another 10% for foreign operations but I'd
have to search that one out again to be certain how it is worded.

You know, my impression is they are being so careful in their wording
of everything so that you can't hold them accountable for violating
the letter of bankruptcy law and practice, but in real life, they have
the ability to manipulate so many things and then just shrug their
shoulders in court and say things happen during bankruptcy.

The documents warrant a lot more study and also following to see new
documents as they are added.