Corporate action events
BRUP: Bankruptcy
Written and maintained by ZagTrader. Last reviewed . How this page is sourced and checked
BRUP tells holders that the issuer is in bankruptcy or a similar insolvency procedure, usually after a court ruling. It is normally an information event with no options and no payment, but it often comes before a delisting, a liquidation payment or a write-off.
- Code
- BRUP
- Usually announced as
- MAND (CHOS or VOLU also allowed)
What BRUP means
A company that cannot pay its creditors can be placed in bankruptcy, administration or another insolvency procedure by a court. Shares and bonds of the company usually lose most or all of their value, trading may be suspended, and any recovery comes much later through the insolvency process.
The announcement itself moves nothing. It is there so that holders, custodians and asset managers know the status, can value the position accordingly and can follow the later events. Bondholders are creditors and may recover part of their claim; shareholders rank last.
When you see it
- An MT564 with
:22F::CAEV//BRUP. The SMPG Event Interpretation Grid treats it as a mandatory for-your-information event with no options and no outturn; the grid also allows CHOS and VOLU where the holder is offered an action. - What often follows: SUSP or DLST for the trading status, DFLT for missed bond payments, LIQU when the liquidator pays out, and WRTH when the security is declared worthless and booked out.
What to do next
- No instruction for the information notice. Flag the security, inform portfolio managers and clients, and review the valuation and any collateral value of the position.
- Keep the event open for later developments. Proof of claim filings, if any, are announced separately with their own deadlines, and recoveries arrive as later events. Updates on the proceedings often come as narrative MT568 messages; see MT564 vs MT568.