DNIB Unwind Inc. (fka BINDQ)

[allchinian]

The tax treatment for DNIB/BIND isn't what I originally thought.

DNIB is known as a "liquidation trust". The Liquidation Trust Agreement may be found starting on page 78 of the amended bankruptcy plan, document 415 on the primeclerk page for the bankruptcy proceeding:

https://cases.primeclerk.com/BIND/Home-DownloadPDF?id1=NDUxNTU5&id2=0

The tax purposes of setting up a liquidation trust are alluded to there.

It looks to me like the point of the liquidation trust was allowing recognition of capital loss in the 2016 tax year, and now I just barely gives me time to revise my 2016 taxes before the 3-year deadline. Note that the trust sent us a 1099 for tax year 2016 two years late, mailed in 2018. Back in 2018 I thought it wasn't a tax issue until the final liquidation would be received, but now I believe I was mistaken.

I'm not a tax expert and I just realized this, so my impression of this tax situation could change and it could be wrong. But the webpage

https://www.eisneramper.com/fund-managers-liquidating-trust-0516/

looks quite relevant.

My broker, Vanguard, still thinks capital loss will be recognized in 2020, which looks completely wrong to me. I'll probably be sending them a letter about my incorrect 1099 form from 2016, which should have recognized my capital loss.

[Bchinnian]

Tax treatment of BIND/DNIB liquidation

There has been some activity on Twitter today in a conversation involving Geoffrey Berman, the court-appointed trustee of DNIB's liquidation. It appears that the major brokerages are ERRONEOUS in sending out 1099's which claim the payouts to shareholders are dividends, which they are NOT:

DNIB did not fill out the forms for the brokers.

— Geoffrey L Berman (@dadthevoice) March 22, 2017

This will cause all sorts of problems for shareholders reporting the payments correctly, because the IRS will get those incorrect 1099s.

In case the link above isn't static, here are the links to the individual tweets:

@dadthevoice I assume you are unwinding DNIB. How do shareholders file US taxes? Declare worthless in 2016 or when final payout comes??

— J Tyson (@b_chinnian5) March 22, 2017

Isn't there something DNIB can do (SEC filing?) to get it through to brokers (and to the IRS that receives 1099) that it wasn't a dividend?

— J Tyson (@b_chinnian5) March 22, 2017

https://twitter.com/KaiGriebenow/status/844699317218787329

No, it was a distribution on account of equity claims. See the 8-ks

— Geoffrey L Berman (@dadthevoice) March 23, 2017

no. It was not a dividend.

— Geoffrey L Berman (@dadthevoice) March 22, 2017

DNIB did not fill out the forms for the brokers.

— Geoffrey L Berman (@dadthevoice) March 22, 2017

I can't give shareholders any "advice" on tax issues. That is for UR CPA. The dist'n was not a dividend.

— Geoffrey L Berman (@dadthevoice) March 22, 2017

I haven't figured out the tax consequences and various tax strategies regarding the liquidation of my DNIB shares yet, but this IRS link seems relevant:

https://www.irs.gov/irm/part4/irm_04-011-007.html#d0e190

The tax year in which the stock is worthless for tax purposes seems to be a critical issue.

-BC

[north40000]

Not as favorable as originally portrayed. When is that distribution to be paid?

[tshel]

payout is only 25 cents , so shareholders buying at 1 dollar before 8/30 got screwed. shareholders buying after 8/30 get no payout , got screwed. short sellers were winners

[Enterprising Investor]

Shareholders at 8/30/16 do.

However, those holding derivatives do not.

[sidedraft]

Does this mean to you that a common shareholder, not just those that bought after a certain date, gets nothing but memories?

As a result of the Amended Plan becoming effective, all of the outstanding common stock and other equity of the Company (including any warrants, options or contract rights to purchase or acquire the Company’s common stock at any time) were cancelled. Pursuant to the Amended Plan, holders of options, warrants or contract rights to purchase or acquire the Company’s common stock will not receive any distribution that may occur pursuant to the Amended Plan on account of such interests.

http://ih.advfn.com/p.php?pid=nmona&article=72638569&symbol=BINDQ

[tshel]

shares cancelled , all the investors buying after record date get nothing ,

[Renee]

BINDQ 8K on BK PLAN made effective:

http://ih.advfn.com/p.php?pid=nmona&article=72638569&symbol=BINDQ

[Renee]

BINDQ BK PLAN effective. All shares cancelled:

http://otce.finra.org/DLDeletions

[Enterprising Investor]

Form 8-K (9/28/16)

Confirmation of Amended Plan of Liquidation

As previously disclosed, on May 1, 2016, DNIB Unwind, Inc. (f/k/a BIND Therapeutics, Inc.) (the “Company”) and one of its subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 (the “Form 10-Q”), on August 15, 2016, the Company filed its proposed combined disclosure statement and plan of liquidation (the “Plan of Liquidation”) and a motion seeking an order confirming the Plan of Liquidation with the Bankruptcy Court. On September 14, 2016, the Company filed an amended proposed combined disclosure statement and plan of liquidation (the “Amended Plan”) with the Bankruptcy Court. On September 26, 2016, following a confirmation hearing held on September 21 and 23, 2016, the Bankruptcy Court entered an order confirming the Amended Plan (the “Confirmation Order”).

The Amended Plan generally provides for the payment in full of timely filed and undisputed claims held by the Company’s secured and unsecured creditors (“Creditors’ Claims”), with secured creditors’ claims to be paid in full in cash or otherwise as permissible by the Bankruptcy Code, and unsecured creditors’ claims to be paid in full in cash or otherwise as the holders of such claims agree. The Amended Plan further provides for an initial cash distribution, within 90 days of the effective date of the Amended Plan, to the Company’ stockholders of record on August 30, 2016 in the aggregate amount of $8.0 million (the “Initial Distribution”); provided, however, that the Initial Distribution will not be made until the satisfaction in full of Creditors’ Claims and certain other claims entitled to priority under Section 507 of the Bankruptcy Code, and the payment in full of the Company’s professional fees and expenses relating to the Company’s Chapter 11 case. In addition, pursuant to the Amended Plan, any unpaid fee claims as of the date of the Initial Distribution, as well as expenses relating to the Company’s wind-down activities (“Wind-Down Expenses”) due as of such date, will be paid out of the Initial Distribution amount. Under the Amended Plan, after the Initial Distribution, no further cash distributions to stockholders of record as of August 30, 2016 will be made unless and until all claims of higher priority under the Bankruptcy Code have been fully satisfied and all objections with respect to such claims have been resolved, and all then-incurred Wind-Down Expenses have been paid.

In addition, the Amended Plan (i) provides that all outstanding common stock and other equity of the Company (including any warrants, options or contract rights to purchase or acquire the Company’s common stock at any time) will be cancelled on the effective date of the Amended Plan; and (ii) provides that holders of options, warrants or contract rights to purchase or acquire the Company’s common stock will not receive any distribution that may occur pursuant to the Amended Plan on account of such interests.

The Amended Plan is not yet effective. In accordance with the Amended Plan, the Amended Plan will become effective upon the satisfaction or waiver of certain conditions precedent. The Company currently anticipates that the effective date of the Amended Plan will occur in the fourth quarter of 2016. On the effective date of the Amended Plan, all assets of the Company will be transferred to the DNIB Liquidating Trust, to be administered by Geoffrey L. Berman, who will become the post-confirmation liquidating trustee, as further described in the Amended Plan.

The foregoing description of the Amended Plan does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended Plan, which is filed as Exhibit 2.1 hereto and incorporated herein by reference. The full text of the Amended Plan is also available on the website of Prime Clerk LLC, the Company’s claims agent, at https://cases.primeclerk.com/BIND/.

Share Information

As of September 23, 2016, the Company had 20,975,619 issued and outstanding shares of common stock.

No shares of common stock are reserved for future issuance in respect of claims and interests filed and allowed under the Amended Plan. In its most recent monthly operating report filed with the Bankruptcy Court on September 1, 2016, the Company reported total assets of $31,249,239.12 and total liabilities of $21,050,845.93 as of July 31, 2016.

https://www.sec.gov/Archives/edgar/data/1385228/000119312516721570/d265486d8k.htm

[Pennyprof]

The complete form is on OTC market site: Delisting Determination,The Nasdaq Stock Market, LLC, September 26, 2016, BIND Therapeutics, Inc. The Nasdaq Stock Market, Inc. (the Exchange) has determined to remove from listing the common stock of BIND Therapeutics, Inc. (the Company), effective at the opening of the trading session on October 6, 2016. Based on review of information provided by the Company, Nasdaq Staff determined that the Company no longer qualified for listing on the Exchange pursuant to Listing Rules 5110(b) and 5450(b)(1)(A). The Company was notified of the Staffs determination on May 2, 2016 and May 10, 2016. The Company appealed the determination to a Hearing Panel. On July 28, 2016, the Company withdrew its request for an appeal. The Staff determination to delist the Company became final on August 1, 2016.

[petermic]

I see this: https://www.sec.gov/Archives/edgar/data/1354457/000135445716000504/xslF25X02/primary_doc.xml

But don't see date on it.

[Pennyprof]

Looks like shares will be deleted on Oct. 6th

[Enterprising Investor]

Plan of Liquidation is confirmed.

[petermic]

If I read these documents correctly, the Plan was confirmed, dated today, without amendment by the Court.

https://cases.primeclerk.com/BIND/Home-DocketInfo

Believe BINDQ has no value.

[north40000]

Any transcript or other notes from that disclosure hearing available? I assume there will be an SEC filing....correct?

Quite a wide range today....0.26-0.42

[Enterprising Investor]

Disclosure Hearing was held yesterday.

No change to the record date of 8/30/16. Anyone buying shares the next day forward is risking a total loss.

If only there was certainty, I would sell my holdings short.

[north40000]

Anyone awake here and still holding BINDQ shares? Notice price increase last few days... Anyone have a reason?

[Enterprising Investor]

No change for common shareholders.

The filing was designed to provide clarification that holders of options, warrants or contract rights to purchase or acquire common stock will not receive any distributions. This verbiage should have been included in the earlier Plan and Disclosure Statement.

In reality, I cannot see how anyone holding an out-of-the money option or warrant would actually exercise.

The weighted-average grant-date fair value of options granted in 2015, 2014 and 2013 was $5.12, $7.78, and $6.05 per share, respectively. Warrants were exercisable at $6.60 per share.

[ErnieBilco]

Very confusing 8K - Are these scumbags now eliminating the distribution or what? What a total sham, if the company is winding down WHY is the BK judge paying "intercompany" claims at 100%?

[Enterprising Investor]

DNIB Unwind Inc files Amended Chapter 11 Plan of Liquidation (9/14/16)

The Amended Plan, among other things, (i) provides that all outstanding common stock and other equity of the Company (including any warrants, options or contract rights to purchase or acquire the Company’s common stock at any time) will be cancelled on the effective date of the Amended Plan; and (ii) clarifies that holders of options, warrants or contract rights to purchase or acquire the Company’s common stock will not receive any distribution that may occur pursuant to the Amended Plan on account of such interests.

The full text of the Amended Plan is available on the website of Prime Clerk LLC, the Company’s claims agent, at:

https://cases.primeclerk.com/BIND/

[Lone Wolf]

Holy smokes!! Big volume right out the gate!! WTF? Isn't this just a shell at this point? Who's buying up all their shares?

[McMahon]

There are only 3 possible reasons to buy BINDQ right now:

1) You are uniformed, and don't know that those who bought after 8/30 get nothing.

2) You believe that in the upcoming court date on 9/21 the judge is going to throw out the entire unwind plan AND he is going to screw shareholders out of the money that we are due to receive as outlined in the already approved plan.

3) You believe that the court is going to revise the plan, and insist that current shareholders receive the payout, rather than those who owned on Aug 30th.

[petermic]

Does anyone have any insight as to why BINDQ is rising? Is there a chance there is some value in there?

I thought for sure it was worthless after August 30.

[Pure_Greatness]

,,,,,,,I'VE BEEN WATCHING SHORTY GET BURNED/ON DA DAILY!!!!

[Lone Wolf]

Someone's buying up the float. Who and why?!?

$BINDQ

[ClearlyStocks]

BINDQ .375

[Lone Wolf]

Link back...thinking maybe someone's moving into this she'll. Would make sense!!

$BINDQ

[ClearlyStocks]

BINDQ .36

[ClearlyStocks]

BINDQ .34

[ClearlyStocks]

BINDQ .32

[ClearlyStocks]

BINDQ in .30 decent size

[Lone Wolf]

Quite the week here. 100% gains so far...and counting.

What's up with the HUGE volume today??

[Enterprising Investor]

Monthly Operating Report (9/07/16)

https://www.sec.gov/Archives/edgar/data/1385228/000119312516703332/d254410dex991.htm

[gm99]

BINDQ, shares might be Deleted today AH or in this week. If you're lucky, you might sell OR lose everything.

[Forever Long]

But this person or group requires some kind of payment to see his info. He might be right...

[Liam_S]

Chances are the ex-div date will be fixed at sometime subsequent to the payment date based on SEC rules for large dividends. In which case those who are selling today will not get the payout and brokers will be responsible for routing the payments to the appropriate holders as of the ex-div date.

[tshel]

BINDQ on finra daily list , no ex date . anybody buying after 8/30/2016 are buying worthless shares.

[ErnieBilco]

I assume because the judge hasn't signed it yet. I also think that since there was a distribution that the stock couldn't be cancelled as worthless since there is a "chance" of another distribution (IT WAS CLEARLY STATED THAT NOBODY EXPECTS ADDITIONAL DISTRIBUTIONS BUT THERE IS A CHANCE)

I'm just thinking out loud and have no legal basis for my thoughts.

[Liam_S]

why is it still trading then if record date was yesterday?

[Liam_S]

Point of correction: the equity holder record date is indeed August 30 and a plan of liquidation has already been filed and will be set for hearing on September 21. I just saw this on an 8K filing.

[Liam_S]

This absolutely makes no sense. The company just applied to have its exclusivity period extended to end of November and that hearing is set for later in September. The shareholder record date can not possibly be set for august 30. The August 30 deadline is for claims, not equity ownership.

[minten]

you're right.

[lowman]

Seeking Alpha. Figures.

[ErnieBilco]

It was in the Q filed Aug 15th - says it pretty clearly.

[hondaboost]

When will that happen? If so, BINDQ will be deleted? Thanks.

[willlbone]

Gotta hang the hog just right so that bleeds out completely.

[minten]

wow. amazing they don't warn investors in advance about that record date, absolutely uncalled for imo.

[willlbone]

Liquidated.

[Renee]

The company wanted to hammer home the liquidation of the company by reversing the letters BIND to DNIB Unwind Inc. Haven't seen that kind of action on any other BK stock.

Just an observation.