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You can still claim the loss even if you didn't sell -- the point is that the stock has to be worthless. Read this and consult a tax professional if you have any more questions:
http://taxation.lawyers.com/income-tax/tax-deduction-for-worthless-securities.html
Mark it down as a loss on Line 13 of your 1040. You can claim a maximum of $3,000. The rest gets carried over to future years.
Yup. This is the Denver company that bought AxiaLIF and Vectre at last year's auction. They also bought rights to the old TranS1 name. Baxano shareholders will see no benefit whatsoever. Very frustrating.
That's right. I'm claiming my losses this year. If by some crazy turn of events it comes back, you'll just have to record the gains in future years (little to no chance of this happening).
The company that bought AxiaLIF in the auction has restructured under the Trans1 name. Doesn't affect what's left of Baxano at all.
Limbo. They still owe $4M, which they more than likely can't pay if the business truly is ending.
Looks like final allowed claims is $4M, down from $19M a year ago, with no secured debt. This is actually really workable if they were to emerge.
http://omnimgt.com/CMSVol2/pub_46887/556658_668-2.pdf
Chapter 11 cases can drag on for years. Fortunately, this one appears to be basically done. Next step would be to let the liquidating trust pay back creditors with whatever's left (usually pennies on the dollar). You can take the tax loss next year. Just need to document for the IRS. The trust could end up with a clean shell that could be sold off. Shareholders could get something there, but the chances are remote.
Next hearing Dec. 1. Still going ...
Your equity in Baxano was transferred to the liquidating trust, where it most likely will be wiped out. But, since the case is still open, brokerages haven't yet received the final word of what to do with the shares. I'm assuming shareholders will get a letter at some point once the deed is done. You can claim the loss next year -- but you must always prove to the IRS it is indeed a loss.
Shares are now a concern of the liquidating trust. Not trading. Payout unlikely.
Adjusting claims.
Welcome to the Baxano Liquidating Trust!
Automatic stay lifted. That's bankruptcy protection. Need to see if they seek to emerge.
http://omnimgt.com/CMSVol2/pub_46887/542640_616-0.pdf
The creditors approved a liquidating plan that would in effect dissolve Baxano. If the judge closed the case that day, it would all be over. So I guess that's where the "evidence" comes from. But the case isn't over yet. The board finally filed motions with their own lawyers -- separate from Baxano. We have to find out what they want, and if their interests align with our interests. This isn't always the case, unfortunately.
Think of equity interest as "value," not shares. So of course this gets canceled for "old Baxano" -- that entity will cease to exist post-bankruptcy. But the shares could live on in "new Baxano," and that's up to the board (has to want it), the debt (looking good) and ultimately the court to decide. The emergence of board members over the last few weeks hints at survival. We should have a clearer picture by Thursday. Good luck.
Everyone needs to chill. Wait for the hearing. Yes, the shares are set to cancel in the current Chapter 11 plan, but this was before the directors stepped forward. Still very risky, but at least there's a path forward. Nobody knows what's going to happen or how long it's going to take.
The elephant in the room was always the Hercules secured debt. In my mind, Baxano went to court for the purpose of paying this down and has done so. $10 million to unsecured creditors is very manageable. Case has seen positive developments since January. Recent signals from the board are good.
I took a closer look at the January patent. It's an implant.
Loving this.
Baxano always seemed to be better with IP than manufacturing. Keep that in mind.
I'm a little surprised by all this because Baxano no longer has anything to sell. January patent is a possibility, or directors may have other ideas.
Looked over the court docs. Things have changed over the last few weeks. There was a motion to seek post-petition financing. There was a motion for relief from stay (to pay liabilities with an insurance policy). The directors have finally shown up with their own lawyers. The current Chapter 11 plan dissolves Baxano, so we should see that amended. That needs to happen to keep shares intact. Don't know where this is going, but signs are positive.
You know all viable product lines were sold, right?
Truly, only an insider would buy this much down here.
Just remembered Reali landed with the Pritzkers. Who knows. A boy can dream!
Chill is right. Sub-penny trading is a weird, risky ballgame. Don't tell yourself you're missing anything. Sit tight and wait for Wednesday.
Wow, look at all this chatter. Looks like the board finally made a move. It's a good sign, though we don't know what its intentions are. Reverse merger? New Baxano? Old Baxano has been reduced to nearly nothing yet meticulously maintained by John Palmer. You have to wonder why. So, in the event that new shares are issued, you'll have wished you averaged down. Old shares can get squashed by a lot. I'm talking as much as 90 percent. Up until a few days ago, it looked like the court was going to accept a plan that would wipe out equity interests. Looking forward to Aug. 12. Good luck, everybody.
Seems unlikely for the Chapter 11 plan to allow for Baxano to survive as a shell company with shares intact while the court creates a liquidating trust for creditors. I'd like to see examples where this is the case.
I do own shares and am coming to terms psychologically with my huge loss. With the share price and volume so low, there's no point for me to sell. My order won't get filled. If the trust plan is approved, there is no chance for recovery. There is no riding it out. We're not there yet, but looks to be the case.
There's no new company in this scenario. It's a trust set up to pay creditors when possible.
Baxano is clearly now working toward creating a plan trust for unsecured creditors that would wipe out shareholder equity. This is what we all expected and feared. The following excerpt is taken straight from the "term sheet," which granted, isn't the real proposed Chapter 11 plan but shows you what the eventual Baxano plan could look like. I believe it's the first time we've seen the language.
"All equity interests of any kind in the Debtor, including common and preferred stock, options, warrants, and other agreements or rights to acquire the same existing prior to the consummation of the Restructuring, shall be cancelled upon the effective date of the Debtor’s Plan without any further action."
http://omnimgt.com/CMSVol2/pub_46887/522036_374.pdf
It appears Baxano has hired a debt collector. Can this case get any weirder?
http://omnimgt.com/CMSVol2/pub_46887/521300_355.pdf
You would think.
Good questions. Very odd action. Seems like shorts would have had to cover by now. But, maybe this is the bounce with .001 around the corner. New biz? I really doubt it, but stranger things have happened.
No reason for the pop. Will come down.
I believe Hercules agreed to pay DIP financing for the entire post-petition period -- I'd have to check the court docs to be sure. If so, should last until the Chapter 11 plan is presented (assuming no Chapter 7) and the case closes.
If a miracle happens and equity is retained, shareholders would certainly see their holdings diminished. When issuing shares of the new company, Baxano would have to make room for the creditors it couldn't pay.
Yes, in theory it is very good that Baxano paid off Hercules. They made good on their loan. You could go further and argue that everything in this case has gone very well (except the proceeds from the asset sale).
But, I'm not expecting much to happen here, honestly. I'm pretty sure everything of value has been sold or will be sold.
True, Baxano did receive a patent in January. But, the company in its current condition can't afford to bring any products to market. Baxano has terminated contracts with key employees and vendors. I think it's just Palmer and the board now. It seems Palmer's primary goal is to wind down the business. If someone with financial backing willing to take on debt comes along and wants to work with the Baxano board to develop something under the Baxano name, he could facilitate that. This is the only scenario I can think of that saves shareholders from a 100% loss. And it's very far-fetched.