A public shell that has been formed either through issuance of shares following a bankruptcy (these shares are publicly tradable under bankruptcy laws) or a public operating company that went bankrupt and then sold or liquidated, leaving behind a public shell with virtually no liabilities. Though its shares have value in trading, a bankrupt shell might have a negative net asset value. Bankrupt shells may be targeted by private companies willing to go public through reverse mergers.
December 5, 2023
