How can we sell delisted shares?

25th Feb '21 by stock_Hunter

3 comments 1202 reads

Hi,

I am holding Fairpoint Group plc and Laura Ashley in my IG share account...Any option available to sell these shares? Please guide me

thanks in advance

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Stock_Hunter

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3 comments

slopsjon

25th Feb '21

A company that is a going concern can choose to delist, taking shares and shareholders out of the public domain. Its then more difficult to trade the shares as there is no easily accessible market to trade the shares. This happened to me with one company and eventually the directors bought my shares off me directly.

In the case of the two companies you mention they have gone into administration and as a result trading has been suspended. Shareholders are low down the pecking order when a company goes into administration and in most cases the shares become worthless.

doug2500

25th Feb '21

I'm no expert in this but I think you're options would be:

Sit on them in broker's account hoping you get something back
Remove them from account as certificate then sit on them or....
Gift them to charity so you can claim loss / charity may or may not benefit
Surrender them to broker so you can claim loss / broker may or may not benefit

I've sadly had to do the last option but only after the dust has settled and they were worthless and I wanted to close the account. I can't remember the situation that caused them to still be 'alive' enough to not be cancelled.

sharw

25th Feb '21

As slopsjon says these two companies did not choose to delist - they entered administration. In 99% of cases this results in the shares becoming valueless as shareholders are at the bottom of the pecking order for payment.

To find out what is happening you need to keep an eye on Companies House filings.

In the case of Fairpoint unsecured creditors have been paid less than 1% of what they are owed and the next step is for the company to be dissolved. Follow it here: https://find-and-update.compan...

In the case of Laura Ashley there may be a glimmer of hope as the group holding company held the intellectual property whereas the subsidiaries are in a dire state. To decide whether your shares are worth a few pence you need to read the latest 62 page report here : https://find-and-update.compan...

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How can we sell delisted shares?

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Stock_Hunter

3 comments

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