I do agree that the shareholders were wronged and I let my voice be heard.  Some sold and some held on hoping for a miracle. I think that was a personal decision to sell or hold. Some sold right as the news hit but some real long timers like me were in shock and just held on. It is also risky not to sell because you could minimize your loss by selling.

I actually had back to back bankruptcies filed on two of my longtime stocks and sold neither.   I think if you are the average investor then it is all very confusing and many sell based on panic. Holding or buying is a huge risk but below is an article that explains trading during Chapter 11 bankruptcy.  Still don't understand exactly what it means or how it translates into Chapter 7 trading. However, if a stock keeps trading then sadly I would have to believe that all trades are fair and legal regardless of whether some investors emerge from the trading better than others. (Unfortunately the market is all about timing and at one time even Jim Cramer recommended that people buy WR Grace during its Chapter 11 filing.)

I used to think some people were smart about their investments but after my experience with my back to back bankrupt stocks, I think investing today with all the millisecond bot trading is pure gambling, timing and luck. I personally lost a lot in the market and would just like to break even at this point.  Those who recently started buying will do much better than me and many others imo... sadly I think this is unfair but I learned many years ago that life can certainly be unfair.  I also learned over the years that if you don't want to risk losing your money then don't play the market.  There may be no crying in baseball but there certainly can be a lot of crying, sleepless nights and anxiety over a lost investment.

https://www.google.com/amp/s/www.thestreet.com/trading-a-stock-in-bankruptcy-5-facts.html 

My Best to All...

iam