4Licensing Corp. (fka FOURQ)

[mrholty]

The Diligent Investor weighs in.

http://thediligentinvestor.blogspot.com/2012/10/4kids-entertainment-inc-files.html

4Kids Entertainment, Inc. Files Reorganization Plan Preserving Equity Interests

Some of my favorite lines from his thoughts.

Reorganized 4Kids will emerge from bankruptcy protection, likely by year’s end, having paid all creditors in full, in cash, and having preserved all of their equity interests.

The reorganized 4Kids will continue to operate in the licensing business in order to preserve the most value for the estate whose remaining assets include cash, legacy licensing properties, over $100 million in Net Operating Losses (NOL) and a $31.5 million claim against the Lehman Brothers Inc., SIPA Liquidating Estate for which it also seeks treble damages. The legacy properties not sold during the bankruptcy process include, but are not necessarily limited to: Artlist, Dinosaur King, The Cat Fancier’s Association, Rocket Monkeys, Viva Pinata, Charlie Chan, Negro League Baseball Players Association, Thundercats and Chaotic.

Within the past couple of months the Debtors hired the middle market consulting firm Chikol Equities, Inc. as its Financial Advisor. Chikol’s valuation of the reorganized 4Kids, based on projections assuming, among other things, market acceptance of the new company’s products and services, supports an Enterprise Value between approximately $9.0 million (or $0.65 per KIDEQ share) to $10.1 million (or $0.74 per share), with a midpoint of $9.5 million (or $0.69 per share) as of October 4, 2012. See Appendices C & D attached to the Disclosure Statement for more information.

The author has a net long position in (KIDEQ).