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This could of been a Sweet play!
thank you, saw someone post commons survive and in IHUB, you're never sure who to believe, but thought I had right idea. and today down she goes, tons of plays out there. I'm always open for tips and or good plays, I use EF and just got it a few weeks ago, been trying to get some help on some tips for filters and alert type settings, any help in your spare time would be appreciated tyia
That is exactly what it means Sooky. The commons DON'T SURVIVE. This will be HALTED AT ANY TIME NOW so folks please be careful playing with fire here.
DD22
p.s. GM had the same scenario when they emerged from Chapter 11. Their stock traded several days and then BAMM!!!! SEC halted it and it was gone. This company IS NOW PRIVATELY OWNED by the creditors who bought JH. There are no longer any reporting requirements. Everyone has been warned.
just got home and read the whole thing. sounds like we need more info if commons survive. I'm not too good on these issues, so I might have to stay on the sidelines and keep watch. Might jump in when my funds clear. from what I've read >
"the pre emergence stock will be extiguished according to the new plan" and the rest I'd like to dig deeper to find what this really means. thanks for the link
Surprised! All the common shares are survived now after exiting from
the CH11 today! Hopefully the very sick CEO won't cancel it tomorrow
NP at all Snook!
thats what I thought, thank you for your help
Breaking News: JHTXQ will exit from the CH11 today!
Jackson Hewitt wins OK to emerge from bankruptcy
Mon Aug 8, 2011 2:11pm EDT
* Plan turns bulk of company over to lenders
* Creates $1.1 mln trust for unsecured creditors
* Equity holders wiped out
By Nick Brown
NEW YORK, Aug 8 (Reuters) - Jackson Hewitt Tax Service Inc (JHTXQ.PK) won court approval of its reorganization plan on Monday, clearing the way for the second-largest U.S. tax preparer to emerge from bankruptcy under the control of lenders led by Bayside Capital.
The deal effectively completes a swift restructuring for Jackson Hewitt, which filed for Chapter 11 protection from creditors in May with a prepackaged restructuring plan.
U.S. Bankruptcy Judge Mary Walrath confirmed the plan at a hearing in Wilmington, Delaware, lawyers for Jackson Hewitt and its creditors said.
The Bayside group will take a 75 to 80 percent stake, with the remainder going to Wells Fargo & Co (WFC.N) and Bank of Ireland (BKIR.I), said Mark McDermott, Jackson Hewitt's bankruptcy lawyer.
"We got a lot accomplished," he said. "We managed to leave behind most of the litigation, and we did it all in only a couple of months."
The plan also creates a $1.1 million trust to be paid out to unsecured creditors, said Christopher Winter, a lawyer for Jackson Hewitt's official creditors' committee, which supports the plan.
It will also allow a trustee to pursue about $2 million in so-called avoidance actions on behalf of unsecured creditors, Winter added. Shareholders will recover nothing.
"It was a very difficult case and there was no apparent value for unsecured creditors, so the committee is pleased with the outcome," Winter said.
Jackson Hewitt did not immediately provide a comment. An attorney for the Bayside lenders could not be reached.
Jackson Hewitt filed for bankruptcy May 24, after regulators began clamping down on refund anticipation loans, which tax preparers often provide to tide over customers expecting refunds. Regulators called the loans unsafe, making it harder for tax preparers to secure funding for them.
The curbs caused Jackson Hewitt to get into trouble with lenders when it failed to secure full funding for the loans, a key covenant in its credit agreement.
In its May 24 bankruptcy filing, Jackson Hewitt showed assets of $388.6 million and debt of $444.8 million. The company said at the time it hoped to emerge within two months.
The case is In re: Jackson Hewitt Tax Service Inc, U.S. Bankruptcy Court, District of Delaware, No. 11-11587.
(Reporting by Nick Brown; Editing by Richard Chang)
I'm not sure if the common shares will be canceled today or later!
The commons shareholders get nothing.
Paragraph 7..
http://www.reuters.com/article/2011/08/08/jacksonhewitt-idUSN1E77711L20110808?feedType=RSS&feedName=bankruptcyNews&rpc=43
says the pre emergence stock will be extiguished according to the new plan although JHTXQ will be a private compny, so new shares might be issued and old ones cancelled? Like I said I am still learning these bk stocks any insite?
The common shares should be canceled today based on the common sense
unless the company forgot to cancel the stock at the end of today...
court confirms POR today. I'm not good at reading these things, but from the pr, does it mean the pre POR shares are cancelled? I'm not in this stock, just trying to learn tia for any help
Huge sell-off and new 52-week low 0.0051 was created today! However
the shares has not been canceled yet! It may survive for a while...
9:30am in Wilmington, De. Wonder if they cancel today. I'm just sitt'n on the sidelines.
Jackson-Hewitt Tax Service Plan, Supplements Filed
Jackson-Hewitt Tax Service filed with the U.S. Bankruptcy Court an Amended Joint Prepackaged Chapter 11 Plan of Reorganization. According to the Disclosure Statement, "In accordance with Bankruptcy Rule 9019, the Plan constitutes a good faith compromise and settlement among the Debtors, the Lenders, the Administrative Agent and the Creditors' Committee, regarding the treatment of the General Unsecured Claims under the Plan, and reflects and implements such compromise and settlement, including by establishment of the Post Effective Date Trust and transfer of the Post Effective Date Initial Funding and the Transferred Avoidance Actions into the Post Effective Date Trust. Such compromise and settlement is made in exchange for consideration and is in the best interests of the Debtors, the Estates, the Lenders, the Administrative Agent and the Holders of General Unsecured Claims; is within the reasonable range of possible litigation outcomes, is fair, equitable and reasonable and is an essential element of the resolution of these Chapter 11 Cases. The compromise and settlement embodied in this Plan: (i) falls within the jurisdiction of the Court under 28 U.S.C. § 1334(a), (b) and (d); (ii) is an essential means of implementing the Plan pursuant to section 1123(a)(5) of the Bankruptcy Code; (iii) is an integral element of the transactions incorporated in the Plan; (iv) confers a material benefit on, and is in the best interests of, the Debtors, the Estates and holders of General Unsecured Claims; (v) is vital to the overall objectives of the Plan to finally resolve all Claims; and (vi) is consistent with sections 105, 1123 and 1129 of the Bankruptcy Code and other applicable provisions of the Bankruptcy Code." The Company also filed Plan Supplements for its Chapter 11 Plan of Reorganization.
Warning: Tomorrow (08/08/20111) will be a key day to decide the fat
of JHTXQ: dead (shares cancellation) or live (shares survived)?
No any new at all today! Shocking news may be on the next Monday...
Will we get some news today? JHTXQ is looking oversold.
Tomorrow will be the last normal trading day before the key date of
next Monday (08/08/2011)! Let's send the CEO to the jail or file the
lawsuit to the court to prevent the JHTXQ from exiting from the CH11
JHTXQ is up 20% so far! Buy at the ask ASAP to catch the boat...
JHTXQ is currently a very risky player after 07/25/2011's ugly news! It is a "buy" in terms of the low MV, but a "sell" per the key date 08/08/2011 which will cancel all the common stock if no objection!
What gives you any hope this bankrupt POS has any future?
If the shareholder can file the lawsuit to the CH11 bankruptcy court against the company or CEO we might have some hope! Otherwise it is
totally depends on the very sick CEO if he cancels our shares or not
IS THERE ANY HOPE HERE?
How to send the CEO to the jail? Because he is too greedy & crucial to decide to cancel the stock in such short period! I will only play the swing trade to gamble the very small money until 08/08/2011...
The CEO is too greedy and crucial to decide to cancel the stock in such short period! I will only play the swing to gamble some money!
this one seems like its done....companies just S#$@ on the shareholders...im glad I did dd...I mean u could play the pops but unless they change their minds stick a for in her!
Another new 52-week low 0.0161 was created today! What's wrong here?
Yesterday there was no "0.02 walls" at all! JHTXQ was 0.015 x 0.02!
If my understanding is correct it seems a very bad news! Which means the very sick CEO might cancel all the common shares on 08/08/2011.
When I saw the court news, I was shocked as well! JHTXQ's CEO is too greedy and too bad for all the royal shareholders! He tried to wipe
out all the longs without costing the company a penny...
Thanks to your post earlier, I was able to get out at .03
Another new 52-week low .02 was created today! What's going on here?
From 05/24/2011 JHTS Bankruptcy Filing Day's News:
JHTX BANKRUPTCY
Jackson Hewitt Reaches Agreement With Lenders to Restructure Debt
Jackson Hewitt Tax Svc (QB) (USOTC:JHTX)
Today : Tuesday 24 May 2011
Jackson Hewitt Tax Service Inc. ("Jackson Hewitt") (OTCQB: JHTX), the nation's second largest tax preparation firm, today announced that it has reached a definitive agreement with its secured lenders on a restructuring plan that will significantly reduce the company's outstanding debt and interest expense, while putting the company on solid financial footing with an appropriate capital structure to support its business plan going forward. Jackson Hewitt expects the restructuring plan to be fully implemented in 45-60 days. During this period, Jackson Hewitt will have the liquidity and financial flexibility to operate in the normal course and begin preparations for the 2012 tax season. In connection with the restructuring plan and its implementation, Jackson Hewitt expects that no disruption will be experienced by its clients, franchisees or employees.
"This is a very important and positive day for Jackson Hewitt and its key constituents," stated Philip H. Sanford, president and chief executive officer of Jackson Hewitt. "Our clients, franchisees, employees and business partners can be confident in our future, as we take the steps to reduce our debt and interest expense, while significantly strengthening our balance sheet. The debt and interest rate burden we have carried in recent years has limited our potential and financial flexibility and, this will no longer be the case. With the solid support of our secured lenders, the debt restructuring we are implementing will position Jackson Hewitt with a strong balance sheet, a fully funded business plan and the ability to make investments that will better position us to compete and win in the market place going forward. The Jackson Hewitt brand is greatly strengthened by the actions we are taking today, and we can confidently begin our preparations for the 2012 tax season and beyond. Our only regret is that there is insufficient value for our equity holders and unsecured creditors to share."
"It is also important to note that the day-to-day operations of our business will not be affected by the implementation of our debt restructuring plan," continued Sanford. "We want to assure our clients, franchisees and employees that we are committed to strengthening Jackson Hewitt for the long term and to continuing to provide quality, accurate tax preparation services that meet the needs, and exceed the expectations, of our valued clients."
In order to implement the financial restructuring, Jackson Hewitt and its subsidiaries today filed voluntary petitions for reorganization under chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The Company also filed, with the petitions, a pre-packaged plan of reorganization that contains the terms of the restructuring agreed to with the company's lenders.
Since Jackson Hewitt has already received all of the necessary approvals from its secured lenders for the proposed Plan, it will request that the Court confirm the Plan on an expedited basis. In the interim, Jackson Hewitt's franchisees will experience no changes in their day-to-day business activity and Jackson Hewitt clients will have continual access to tax preparation services at Jackson Hewitt offices nationwide.
Under the terms of the proposed Plan, Jackson Hewitt's current secured lenders will receive their pro rata share of a new $100 million term loan and all of the equity in the reorganized enterprise. The Company also anticipates entering into a new $115 million revolving credit facility upon consummation of the Plan. It is anticipated that upon consummation of the proposed Plan, Jackson Hewitt's new equity will be privately held. Under the proposed Plan, all of the Company's existing common stock will be cancelled upon Jackson Hewitt's emergence from bankruptcy.
Moelis & Company is acting as financial advisor to Jackson Hewitt, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as Jackson Hewitt's counsel.
I my understanding is correct it seems a very bad news! Which means the very sick CEO might cancel all the common shares on 08/08/2011.
Jackson-Hewitt Tax Service Supplemental Motion Filed
Jackson-Hewitt Tax Service filed with the U.S. Bankruptcy Court a supplemental motion requesting that if its Joint Prepackaged Plan of Reorganization dated May 24, 2011, is confirmed at the August 8, 2011 confirmation hearing, than the order confirming the Plan provide that the stay imposed by Rule 3020(e) of the Federal Rules of Bankruptcy Procedure be waived. The Company further requests that upon entry of a Plan confirmation order, the Plan become immediately become effective.
L2 on equity feed
I am wondering how did you know that?
What is your opinion about the trading trend of JHTXQ in the coming
weeks? Are those 6500+ offices belong to JHTXQ's asset?
JHTXQ is up 3% today! The MV $0.88M is ridiculous low as the USA Tax Service industry leader No.2!
The "corporation" public stock part of this company is the only thing Bankrupt. There are over 6500 offices located throughout the US that are owned and operated by independent franchisees.
How did GM keep designing, manufacturing and selling it's cars and trucks worldwide while it was bankrupt?????? Oh that's right. The car dealerships aren't owned by GM.
Exact same concept here.
As a matter of fact...Jackson-Hewitt being a publically traded company IN NO WAY helped or added any value for the franchisees of the company. It needs to go back private and focus on market share by doing what it does best...preparing and filing individual tax returns. Not being a publically owned company running up stupid, unnecessary debt to make some corporate overhead executive look cool.
DD22
JHTXQ is up 10% so far! The MV (less than $1M) is really ridiculous!
Up 14.5% so far! It is trading above the 20-Day MAL now and only .08
is the resistance to move north!
Because the company just needs reorganized, not winding down the tax
preparing business! Which shows the business will expand, not shrink
Why would a bankrupt company....
...be hosting a JOB FAIR???
www.seacoastonline.com/apps/pbcs.dll/article?AID=/20110715/BIZ/107150398/-1/NEWSMAP
Hmmmmmm....
I repeat.HMMMMMMMMM........
Someone should call that number.
Looks like those call options may not be worthless,after all.....
IRS Targets 100,000 Tax Professionals For Noncompliance
Jul. 13 2011 - 10:10 am
comments By KELLY PHILLIPS ERB
IRS 1040 Tax Form Being Filled Out
Image by kenteegardin via Flickr
About 1 out of every 8 of the nation’s professional tax return preparers failed to comply with new regulations for 2011, according to information released by the IRS.
The IRS has announced that approximately 100,000 paid preparers prepared federal tax returns in 2011 without being properly registered. About 712,2000 paid preparers did register properly with the IRS and obtain a new Preparer Tax Identification Number (PTIN).
Improved oversight of paid preparers has been a goal of the IRS for some time now. In 2009, the IRS publicly broached the idea of certifying tax professionals resulting in a flurry of debates on the issue. The following year, the IRS proposed amendments to existing rules which included registration and continuing education requirements. The rules were made final in fall of 2010 and the new PTIN online registration system opened for business.
As would be expected, online registration did not go smoothly in the early stages. I was besieged by accounts from my colleagues of bounced emails, error messages and lost PTINs. In some cases, preparers could not access the system for days at a time to register. By January 2011 – firmly the start of tax season for most paid preparers – the IRS appeared to have eliminated most of the technical glitches and offered additional guidance regarding exams, education and exceptions (try saying that quickly three times in a row).
The exceptions have been quite the sticking point in the tax professional world. More or less, anyone who is paid to prepare a tax return must be registered with the IRS and meet certain minimum requirements. The requirements include a competency exam and mandatory continuing education.
But.
And here’s where it gets confusing – and for some, annoying.
Attorneys and CPAs are exempt both from the competency exam and the mandatory continuing education requirements on the grounds that their respective professions already have standards that exceed those of the IRS. As a tax attorney, I agree that this makes a little bit of sense. Attorneys and CPAs both have to pass fairly rigorous examinations to begin with (attorneys must pass the bar exam and CPAs must pass the CPA exam) and both professions require a considerable amount of continuing education hours in order to retain your license. Duplicating those efforts every year would hardly be efficient and it would be costly. So unfair, right?
The problem – and my counterparts are eager to point this out – is that while tax geeks like me rush to sign up for tax-related continuing education hours, there is nothing that requires that I do so. In fact, I could attend 15 hours of criminal law continuing education hours in order to meet my own state’s requirements and still be exempt from the IRS requirements without a single drop of tax law.
Further, while the three (and in some states, four) days of testing required to pass the bar examination test you on a wide range of legal issues, it’s not tax-specific. On the essay portion, some of the questions may be related to tax but then, some may not. The test questions for the MBE (Multistate Bar Examination) portion focus on Constitutional Law, Contracts, Criminal Law and Procedure, Evidence, Real Property and Torts. Tax is not a focus.
That very issue – that tax is not tested nor mandatory – on the legal side had many non-attorney tax professionals hopping mad when it was first announced.
Then things got even more interesting.
The IRS announced that certain tax preparers who will not be signing returns would also be exempt from the exam and the continuing education requirements. If you’re scratching your head to figure out who that might apply to, let me help you out: big box preparers. Those exemptions are meant to give H&R Block, Jackson-Hewitt, Liberty Tax and other franchise-type tax preparers an out for their employees. For their part, many of those companies argued that their own standards, including exams and education, were much more stringent than those proposed by the IRS. The IRS agreed and exempted preparers who are 18 years old or older and both employed and supervised by a CPA, attorney, enrolled agent or other Circular 230 practitioner who actually signs the tax returns (IRS notice downloads as a pdf).
As with attorneys and CPAs, a non-signing preparer must still obtain a PTIN. The IRS requires all individuals who are compensated for preparing, or assisting in the preparation of, all or substantially all of a tax return or claim for refund of tax to have a PTIN.
So to recap: attorneys and CPAs are exempt from the exams and continuing education requirements. Enrolled Agents are, too, since like attorneys and CPAs, they are already subject to testing and continuing requirements. Non-signing preparers are also exempt under that guidance mentioned above.
And that leaves… who? Basically, unenrolled signing preparers.
Realistically, much like other parts of the Tax Code, it seems that a particular goal (tax preparer regulation) has been so exempted, excepted and watered down that it doesn’t resemble its former self. It is perhaps then, no wonder, that there’s not 100% compliance for the initiative.
To try and bolster compliance, the IRS plans to send “shame on you” letters to those preparers who prepared returns in 2011 but failed to follow new requirements. The purpose of the letters is ostensibly to explain the new oversight program, inform preparers of how to register for a new PTIN, or renew an old PTIN, and where to get assistance.
The IRS is also planning to send letters to taxpayers who “appear to have had assistance” (goodness knows what that means) but are not signed by a preparer. The letter will encourage frighten urge inform taxpayers how to file a complaint against those preparers. Yeah. I am sure that my litigator friends are already salivating at that one.
Why the pressure? A cynic might say that it’s more about revenue: at $64.25 per registration, the IRS was hoping to bring in more than $51 million in PTIN fees this year. Those unregistered preparers represent about $6.5 million in uncollected revenue.
In fairness, the IRS claims that these measures are all about compliance to ensure that tax return preparers are following the new regulations in order to protect the taxpaying public (insert dramatic music here). So, you tell me: are you sleeping better at night now that the IRS has your tax professional’s $64.25?
30% strong up so far! It seems to me bottomed out at 0.03 already...
hmm after DD comms plan to be canned after recovering....but hey this is wallstreet anything can happen...will keep on watch
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