Have a Tax Question? Ask a Tax Expert
Hi from just answer. I'm PDtax, and can assist.
Typically, declines in value do not create tax losses. You have to sell the shares to realize the loss. Your situation is different.
In chapter 11, new shares are often issued to replace the equity you purchased. Often it's called "new common", or other such label.
You have to sell your remaining shares to recognize the loss for tax purposes. The exchange, if there was one, or the revaluation of the old shares does not create a tax loss.
Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.