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Handleman Company Message Board

  • bskptkl bskptkl Sep 23, 2009 4:20 PM Flag

    Great Q! ;-)

    Good news
    They gained almost $4.5 million in "equity". That's over 20 cents per share.
    Bad news
    They are still 3 million in the hole.

    A couple of more quarters of pension plan gains and we are in the chips. I decided to take a shot and buy a bunch today.

    Here is the latest from the q:
    "Based on the Company’s net asset balance as of August 1, 2009, proceeds from the liquidation of assets will be insufficient to provide payment in full to its creditors. As a result, creditors will be paid according to their priority in the following hierarchy and pro rata within the priority category. Payments are estimated as follows (in thousands of dollars):


    Shortfall
    $ 2,778


    It is likely that payment of unsecured creditor claims will not be made for at least nine to twelve months in order to provide funds for payment to creditors yet unknown. These projected payments are based on significant estimates and judgments. The actual amount and timing of cash distributions will depend on a variety of factors, including, but not limited to, the sale of the Company’s remaining assets, collection of the remaining future proceeds from the sale of Crave and REPS, actual costs incurred in connection with the wind down of operations and market fluctuations as it relates to the Company’s U.S. and Canadian pension plans."

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    • If the last Q was great, this one was over the top.

      They gained $10 million in federal income tax refunds due to the law change last month. That works out to a gain of about $0.50 per share taking "equity" up to $0.31 per share.

      Liquidation expected to take longer however, through 2011 they say.