DD Support Board and Research Team

[Michael-Goode]

Great response, as always, Renee!

I have been following CRMBQ since right before they followed BK and it is an interesting situation. The only real assets they have now are potential legal claims that I don't really see them winning. They sold off their entire operating business to Lemonis-Fischer Acquisition Co. (LFAC) for credit due (LFAC-associated entitities were owed $6m or so by CRMBQ -- the company got no cash from the deal, just the cancellation of that debt).

Rather than trying to follow the case on PACER you can usually find who the trustee is and they will often keep all filings on a website. Here it is for CRMBQ: http://cases.primeclerk.com/crumbs/Home-Index

Because the company essentially has no assets left and lots of liabilities, unsecured creditors are going to lose almost everything and the shares will be cancelled. I expect them to be cancelled at the end of the liquidation process, which could take a couple months from the hearing on October 30th to change from 11 to 7.

The Debtors no longer maintain active business operations and have only operated their businesses for the purpose of maximizing the value of the Debtors’ assets, resolving certain claims and winding down their affairs for the benefit of the Debtors’ creditors. The Debtors’ remaining assets include, among other things, potential causes of action including, among others, avoidance actions under the Bankruptcy Code. The Debtors have determined that the best interest of all creditors will best be served by converting these
Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code so that a Chapter 7 trustee may investigate and pursue those causes of action to maximize recoveries while reducing the continuing costs of the administration of these estates.

Penny stock traders see the headlines about Crumbs reopening stores and bid the stock up without realizing that CRMBQ doesn't own the stores or the brand any more.

I blogged about this:
http://www.goodetrades.com/2014/10/crumbs-holding-company-crmbq-to-liquidate/

PS - I'm short a bit of CRMUQ and looking to short CRMBQ but can't get a borrow.