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Yesterday, a company whose stock I own declared bankruptcy (dont worry I barely have anything in it.) I was curious to see what would happened to its stock price, but so far (2 hours 20 minutes after market open) there has been 0 trade volume, and it says there is no asks or bids. The stock has the ticker AVH, Avianca Holdings. I'm curious if an action like official bankruptcy pauses stock trades or what is happening.

EDIT: For future reference, the company declared bankruptcy on May 10th 2020, and the trade volume for May 11th 2020 is currently 0, with no visible asks or bids on NASDAQ level 2 data

https://finance.yahoo.com/quote/AVH?p=AVH&.tsrc=fin-srch

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Trading in AVH was halted at 03:57:29

NASDAQ

CBOE

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Avianca Holdings listing on NYSE was halted by NYSE prior to the market opening on 11 Mar 2020 due to the announcement of the initiation of voluntary reorganization proceedings under Chapter 11 of the United States Bankruptcy Code. Trading in AVH has been halted on other US exchanges too.

During trading halts, all bids and asks are cleared and no trades can occur.

In situations like these, most companies rapidly lose their exchange listing and become OTC securities trading with a five letter symbol ending in "Q".

Past bankruptcy events

When General Motors (with common shares listed on NYSE) went declared bankruptcy it began trading the next day as GMGMQ as an OTC security.

When Oi SA (a Brazillian telecommunications company, with ADRs listed on NYSE under the symbol OIBR) declared bankruptcy in 2016, it was halted for one day before commencing trade as an OTC security.

When LDK Solar Co Ltd (a Chinese solar voltaic company, with ADRs listed on NYSE under the symbol LDK) declared bankruptcy in 2014, it took 5 weeks until it started trading again as an OTC security.

Likely resumption of trading

Since they are looking at a reorganization of the company it's likely that the ADR will resume trading as an OTC security, but there may be other regulations involved given the Colombia listing, plus other COVID-19-related delays.

Sources:

Various databases at Norgate Data

SEC Filing/press for Avianca Holdings

Avianca Will Keep on Flying Website

Disclosure: I am a co-owner of Norgate Data.

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