True, if you don't take action, you will receive nothing. that will increase the distrubution to those that do take action. However, one should receive some kind of notiification in the mail if their contact information with their brokerage house is current.
It will be automatic or you will be notified to complete a verification form. Look for something around the end of the year.
Well, a settlement has been offered to the major holders of the unsecured claims, namely the lawyers and auditors hired for the special audit committee that discovered AgFeed was cooking the books. Bottom line - it cost us shareholders $11,034,810 to have this work done. At about 64 million shares outstanding (I think it was that amount but it has been so long I may have forgotten) that is about 17 cents a share, or $1,845 of my hard earned money. I have to say, it wasn't worth any of it. I just can't believe these executives could spend $11M effing dollars on lawyers and auditors fees when they knew right off the bat that dealings in China weren't what they were supposed to be. The CEO should have stopped the audit efforts right at that point. What a sham (not a shame because we simply got swindled [mainly by the Chinese, but also by the AgFeed executives and their hired guns])!
I wonder how much of these claims were interest accrued on the lawyers and auditors fees prior to filing bankruptcy? Just in the 6 or 7 months since Latham and Watkins filed their claim, over $300,000 has accrued in interest. These fees were not paid because management wanted to conceal the whole charades from investors while they unwound their trades and devised a CYA. Total larceny! Now our only course of recovery is civil action against the executives who broke too many laws and securities regulations to even count. Who knows what will be left to the equity holders, especially after the class action is settled (I’m not sure, but the $11M may include the class action settlement). By settling, we save about $350,000 in interest on some of these claims since they were filed – whoop-de-doo!
Does it really take 4 lawyers and 3 more months to wrap this up? I could do it in a day. Lixh is so right about the debtors' lawyers being in bed with their clients. I just hope the judge denies the order and stops the shenanigans!
FWIW, E*TRADE still indicates the last traded price of $0.21 in my accounts. The Brokerage houses' treatments really mean nothing about what is going on behind the scenes. to keep track of that, follow the docket on the BMC Group site.
This is a schedule of allowed claims, looks mostly like lawyers bills. Not sure what it represents. Has anyone reviewed it and can let me know how it relates to the Class Action Lawsuit. It is a big chunk of change.
Ma, you are correct and have stated it in more precised terms. I merely stated in terms that stock gains always offset stock losses, which isn't very clear. I do my own taxes, first w/o Turbo Tax and then later with it. As one knows a subject well, they will get lazy in presenting concepts. In terms of taking a deduction, if that becomes the case, it can be more advantageous to take it in a certain year versus another if you are able to predict variations in wages. My salary is relatively constants, so it doesn't make any significant difference to me when I take deductions.
I have banked alot of capital gains losses, first from my Dad's estate in 2006 (about $23k) which helped offset a ton of gains I got from FEED in 2008 when I was unemployeed), then I had more losses in 2011(?) when I bet against the quick recovery with the ETF FAZ. Now that I have these FEED loses, I'll need to make alot of good decisions to get back to paying taxes on capital gains.
Keep in mind you can only write off a miximum of $3,000 per year. Stock losses always offset stock gains. Any amount of write-off not take in the year it is lost, rolls over to the next year, when again it off-sets any gains, and so on until the losses are absorbed by gains. There is always the chance that the IRS discontinues this tax write-off benefit, however unlikely.
Not a chance it will trade again. Also, you can take the unrealized loss without jepordizing a payout. the ability to take the unrealized loss is simply a mechanism to help investors to take losses on worthless issues that go dormant.
This is all a result of the SEC insider violations findings and settlement released in March this year. It really doesn't make a difference with the payout to shareholders (if you are also a member of the class action [e.g., held shares back in 2011]) because the money came for AgFeed that would have otherwise been distributed back to remaining shareholders anyway. It just passes through the SEC, I guess so they can claim some sort of victory for shareholders.
FYI, I got this from insidercow, but couldn't post the link. These guys owned alot of shares back in the good old days of accounting fraud.
Buy/Sell* Filed Date Subject Symbol Acquirer Pct Owned Details
B 2014-02-14 13:48:25 AgFeed Industries FEED J 9.5% view
S 2009-07-31 15:21:53 Agfeed Industries FEED Songyan Li 4.35% view
S 2009-07-31 15:19:20 Agfeed Industries FEED Feng Zhou 4.64% view
S 2009-07-31 15:15:53 Agfeed Industries FEED Zhengru Xiong 4.64% view
S 2009-07-31 15:11:22 Agfeed Industries FEED Yunlin Zheng 4.64% view
S 2009-01-12 10:34:39 Agfeed Industries FEED Good Energy Enterprise Ltd 4.8% view
B 2009-01-08 15:58:37 Agfeed Industries FEED Enable Growth Partners L P 6.9% view
B 2009-01-08 15:55:11 Agfeed Industries FEED Levine Mitchell S 6.9% view
B 2009-01-08 15:52:55 Agfeed Industries FEED Enable Capital Management 6.9% view
S 2009-01-05 14:57:57 Agfeed Industries FEED Junhong Xiong 14.4% view
B 2007-04-20 11:41:47 Agfeed Industries n/a Good Energy Enterprise Ltd 8.67% view
S 2007-04-20 11:28:46 Agfeed Industries n/a Leader Industrial Development LTD 0.0% view
B 2006-11-14 17:19:08 Wallace Mountain Resources Corp n/a Songyan Li 7.86% view
B 2006-11-14 17:09:34 Wallace Mountain Resources Corp n/a Leader Industrial Development LTD 17.47% view
S 2006-11-14 16:47:07 Wallace Mountain Resources Corp n/a Yunlin Zheng 7.86% view
B 2006-11-14 16:43:06 Wallace Mountain Resources Corp n/a Zhengru Xiong 7.86% view
B 2006-11-14 16:38:44 Wallace Mountain Resources Corp n/a Yunlin Zheng 7.86% view
B 2006-11-14 16:35:10 Wallace Mountain Resources Corp n/a Feng Zhou 7.86% view
B 2006-11-14 16:33:11 Wallace Mountain Resources Corp n/a Junhong Xiong 16.82% view
Now that you've probably read the disclosure statement, I hope you realize that the $18 million the SEC received will be immediately handed over to the class action lawsuit class, Class 5B ($12.5M) and remaining shareholders (Fairness Fund; $5.5M), not to the SEC. In addition, any insiders found to be causes of actions (like maybe Jin, Padrazo, Stadler, Xiongs, etc.) could likely be removed from the Class 5B and Fairness Fund distributions. I don't know how many shares that will be, but it could be significant and would increase our share of the pie.
You will not get a 1099 because you paid cash for your shares. You just have to report gains and loss as usual on a Schedule D (after any payout, of course). If you already wrote them off as worthless last year, which anyone could have done because of the low share price, then any payout this year would be a gain.
I posted my thoughts earlier (a couple of weeks ago). More recent posts by madaniels are more up to date, particularly with respect to the class action lawsuit.
Glad I am a member of the CA. Just wish I had followed the case earlier and sold my shares then. My losses would have been much less.
If the equity holders' counsel can succeed in clawbacks, then their fee would be worthwhile. I know that one of their earlier actions was to preserve corporate records for this purpose and that there was some intention to do so. This would take another year or two to accomplish don't you think?