Yesterday the stock of the bankrupt Crumbs Bakeshop (CRMBQ) went up over 100%. This is likely because foolish people who don’t understand bankruptcy heard the news about the purchase and think current shareholders will benefit. They will not.
@EDJENNINGS808 doesn’t exist
— Marcus Lemonis (@marcuslemonis) August 27, 2014
See the order yesterday:
Order Under 11 U.S.C. § 105(a), 363 and 365 (I) Authorizing and Approving Sale of Substantially all of the Debtors’ Assets Free and Clear of Liens, Claims Encumbrances and Interests, (II) Authorizing and Approving Assumption and Assignment of Certain Unexpired Leases of Non-Residential Real Property in Connection with the Sale and (III) Granting Related Relief (related document:22 Motion re: for an Order Pursuant to 11 U.S.C. Sections 363 and 365 and Fed. R. Bankr. P. 2002, 6004 and 6006: (1) Approving “Stalking Horse” Asset Purchase Agreement for the Sale of Substantially All the Debtors’ Assets; (2) Approving Bidding Procedures and Form, Manner and Sufficiency of Notice; (3) Scheduling (A) an Auction Sale and (B) a Hearing to Consider Approving the Highest and Best Offer; (4) Authorizing the Debtors to Sell Substantially all their Assets Free and Clear of Liens, Claims, Encumbrances, and Interests and to Assume and Assign Certain Related Executory Contracts and Unexpired Leases; and (5) Granting Other Related Relief Filed by Michael D. Sirota on behalf of Crumbs Bake Shop, Inc.) Service of notice of the entry of this order pursuant to Rule 9022 was made on the appropriate parties. See BNC Certificate of Notice. Signed on 8/27/2014. (slf) (Entered: 08/27/2014)
See my post about the news reports of the sale of the assets to Lemonis Fischer Acquisition Corp and my earlier post detailing the stalking-horse bid details.
See also the Wall Street Journal article on this from yesterday (excerpted below):
The investor group’s no-cash offer leaves unsecured creditors in the Chapter 11 case with few options for recovery. An attorney for the unsecured creditors said in court filings on Monday that a creditor committee could pursue lawsuits against as-yet-unnamed parties to earn money for the group.
Mr. Sirota said after the hearing that the company will liquidate its remaining holdings but that the bulk of the work is done with the conclusion of the sale.
5 thoughts on “Owners of $CRMBQ stock no longer own Crumbs Bakeshop – yet it was still up 100% yesterday”
I stumbled across this comment on your profit.ly wall:
MichaelGoode Aug 13, 9:04 PM
“The problem is that there are no good promoters anymore. I would not even consider buying a pump now except for an intraday scalp.”
and was wondering if subscribing to a guru like Tim Sykes whom focuses on Pump and Dumbs would make for an irrelevant study choice?
Even a couple years ago most of Tims trades were not on promoted stocks. I have always concentrated more on them than he has.
“The are no cash proceeds and the credit bid resulted in the repayment of all indebtedness to Lemonis Fischer Acquisition, which held a first priority security interest in the assets of the Company. The Company’s remaining assets will be liquidated and the proceeds thereof will be utilized to pay unsecured liabilities in accordance with applicable law and certain advisors’ fees and expenses. The Company does not expect that there will be any proceeds available for distribution to shareholders of the Company.”