Expert: Steven Taylor - 6/9/2009

Question
Hi,
I have shares in Leadley, Gunning & Culp International Corp. I understand from another question you answered that they have been delisted. However, they still seem to have an operating business in Toronto. Can I sell them back to the company or something?
I also have shares of Falcon Well Services Ltd. Do you have any info on them?
Thanks very much,
Anthony

Answer
Anthony, in the case of Leadley, Gunning & Culp, the shares have no value. Back in the 1990's, the company ran into trouble and was delisted. The assets were sold and the original company was dissolved. Common shareholders received nothing, as I believe as is usual in these cases that the amount owed to creditors exceeded the sales proceeds. The new owners of the original Leadley assets continue to operate the business. As a current example, General Motors will continue to operate out of bankruptcy, but current common shareholders will be completely wiped out because debts exceed the value of assets. Creditors will own the new company.

For Falcon Well, they were suspended, cease-traded and delisted in 1999 after they went into receivership. Like Leadley, I believe the amount owed exceeded the value of the assets, and common shareholders received nothing.