Why hasn't there been a lawsuit announced? During the last Quarterly report, the shareholders equity on the balance sheet was $99 million. Then management files bankruptcy without any warning whatsoever, no going concern warning, nothing. Instead, they painted a roisy picture. Also, seems like management is not looking out for shareholders interest by filing Chapter 11. They breached their fiduciary responsibility if shareholders get nothing. I'm wondering what the other major shareholders are doing. I see only 2 major institutional holders selling out, but what about the rest? I think they better come up with a plan lead a shareholder buyout of the company. Just needs a white knight right now. Now I know why the economy is collapsing. Strong companies like this filing for Chapter 11 for no reason. Interest rates are low right now and the company can't even get a refinancing. My disappointment is that the restructuring didn't even have time to take hold. If management is pushing for asset sales so fast, you gotta to ask why? This smells of corruption. The point of Chapter 11 is for the company to be able to run it for a year so that shareholder value is restored, and not to "liquidate". It seems this is like Chapter 7 liquidation covered up using Chapter 11. This does not benefit shareholders at all. Should have delayed sale by at least a year to give them time to restructure, do mass layoffs, cut out all the pork, etc. The money I lost here is not much, but just aggravating to see how shareholders are vulnerable to management's own greed. Just pathetic. I'm waiting for shareholder lawsuit, and if I don't see it, I might start my own class action suit, even though I only own a few shares.
I believe that management knows exactly what they are doing to the shareholders, we need to write the judge, call the sec, and pull out whatever defense that we can to save shareholders from having to write this off as a loss. We could use a leader to help direct us, but I am not a leader. I will contribute and help.
Great idea -- but we have time because it will depend on the 'final offer.' For now a simple SEC compliant would do the trick if you can show harm --- 'harm' in SEC lingo means securities fraud.
What really threw me off was I invested in this company because I saw that the institutional and 5% ownership totalled 95%, so I figured that if the institutional investors were still holding, I would be safe. Totally wrong! I didn't expect the institutions to sit on their hands while management cozies up with one of the main creditors to steal the company. Seems like these institutional holders are no better than newbies .. they sell at the first sign of trouble and remain silent while the rug is pulled from under them. So my major lesson here is not even to trust the institutional investor's judgment because they are lame. If these institutional investors don't fight for the shareholders, I don't know who will. So really, have you ever seen a company owned by 95% institutions crash so far so fast. Its simply mind boggling.
I own a whole lot of shares and lost a whole lot of money thus far. I am not going anywhere until it gets closer to the date or until my shares are declared at absolute 0 value. Management has always done the right thing so far. I wouldnt doubt this is all part of the plan. I will say it again. I just might be the one to turn the lights off at this place.
Not so sure if management was sincere?
"Despite the challenging marketplace, we continued to make progress on our turnaround strategy and mid and long term initiatives while staying focused on managing costs," said Michael P. Lavelle, President and Chief Executive Officer.
Further disclosures were required and a follow up to shareholders would have been prudent. Whether necessary disclosures were made are legal and technical issues? The best course is to file a SEC compliant and ask for a stay from the court on the actual sale. To me it appears to be no rush to liquidate the company since its being sold as a going concern, and currently operating with a positive cash flow.