Zhuding International Ltd (ZHUD)

[horst]

In response to your question, Magnum7419, I'm long gone from ZHUD as I mentioned in my last post on this board, owing to the developments with the custodianship - there was more uncertainty than I was comfortable with given the unusual situation of a then-current stock having a custodian application. I don't want to get too into the weeds on ZHUD or keep participating on the board, since I tend not to comment if I don't own shares, but I can tell you all how to learn about the custodianship process for yourselves:

First, the custodian process plays out differently for every stock. Don't let anyone tell you it's always the same. Sometimes custodianships go without a hitch, sometimes they're contested, sometimes the custodian application is approved, other times it's denied. Sometimes there's old debt, sometimes it's already a clean shell. Sometimes the entire process takes a few months, sometimes it drags on for years. Sometimes custodians follow through, sometimes they sell their frontloaded shares and abandon the custodianship. And so on..

It's easiest to follow Nevada custodianships owing to the ease of access to Nevada custodianship documents, followed by Delaware, Coloradio, Wyoming, and Florida in no particular order - they all provide access to some court documents to a lesser extent than Nevada imo.

Anyway, to see how the process goes, I'd recommend finding a few Nevada custodianships you're familiar with that already played out from start to finish, maybe a few Lazar or Bauman tickers. Some of these worked out for retail, some didn't - research a variety of outcomes to find the setups that are most likely to work out.

To do this research in depth, get extended access at Clark County Courts by registering first for a free account and then adding a credit card and requesting "extended access." Once you have extended access, you'll be able to preview the first page of all documents and pay 50 cents per page for subsequent pages. http://www.clarkcountycourts.us

Go through the entire docket of a few completed custodianships, reading the first page of every routine document and paying for the full documents to understand important steps such as proof of claims. By doing this, you'll see details nobody's talking about on the boards, e.g. one ticker may have only one potential claimant for a small amount of shares, while another ticker may have dozens of claimants for millions in what appears to be valid debt. You wouldn't believe the clarity you'll get when you see the docs for yourself. It's very helpful in locating red flags and avoiding pitfalls. It's a good investment if you're planning on sinking any real capital into a custodianship to review all the court docs and not take anyone else's word for it. Reading all the way through all the docs for a few custodianship cases, and looking up every term and process you're not familiar with, is the best education you can get.

What I do personally when doing this kind of research on old custos is go back through the ihub board history of a given ticker to get a sense of the chatter that surrounded each phase of the custodianship. This has provided some good insight in the past, though it's time consuming... You'll also see an assortment of characters show up again and again...

All that said, briefly, Phase 1 of any custodianship is always applying for and hopefully getting custodianship - if the custodianship isn't contested, this usually goes reasonably smoothly assuming the documents are in order.

The custodian's job is to bring the ticker current and bring value for shareholders. Some custodians take this fiduciary responsibility more seriously than others. I expect Greek/Omni would make a good faith effort here.

The custodian will typically try to acquire all documents and determine all possible debts, which could take the form of notes (convertible or otherwise), stock certificates that were never redeemed, delinquent fees and taxes, etc. If there are too many skeletons, usually the custodian won't bother to proceed.

Once custodianships are granted, assuming there's no ongoing trouble from the former CEOboard, imo they usually fall into two main categories: those saddled with valid debt and those that are largely or entirely free of debt. Then, later down the road at merger time, the main categories of custodial tickers are: shareholders get wiped out (the most common occurrence) or shareholders make ungodly gains (less common, but it happens occasionally). Sometimes it's a more neutral outcome, but usually it's either really good or really bad for retail.

In Nevada, the statute of limitations on promissory notes is three years, and on many other kinds of debt with a written contract six years. So when custodians try for old shells that haven't been active over the last six years, there's a good probability the debt has expired due to the statute of limitations.

Anyway, back to custodianships in general and proof of claims: again, some custodians (not all) go through a proof of claims/bar unasserted claims process. This will certainly happen with ZHUD should Omni get the custodianship since it's recently active ticker. Through this process, which takes a while, notices will be mailed and published searching for potential claimants who might be owed cash or shares, or both. If there are any valid claims, the custodian can try to settle them, or if it's too much to deal with, back out of the custodianship. The main reason custodians back out, though, is delinquent fees (to SEC, OTC Markets, NVSOS) and especially taxes, because those can't be settled with shares, only cash. If it's too expensive to proceed, custodians typically back out. If there are valid promissory notes, custodians often try to settle with shares. Settling with shares is Lazar's M.O. btw.

Depending on that outcome, the custodianship may proceed. If it does, subsequent catalysts can include reinstatement (if applicable) and catching up on delinquent filings etc. Those show that the process is moving forward. The filing of delinquent quarterly and annual reports can provide insight into share structure, insider ownership, debt, and so on.

Along the way at Clark County Courts, you'll see a variety of status checks and custodian's quarterly reports. Sometimes motions are approved, contested, or denied - it all depends on the unique circumstances of each ticker.

Assuming the process is completed, the most exciting and also riskiest time is just after motion to terminate custodianship is granted through the reverse merger (should one take place). I'd say maybe one of out five at best work out well for retail after a merger. When they work out, it can be a glorious thing. When they don't, shareholders can get wiped out. I've been in both recently: wiped out with my last stash of QUT*/BRR* shares, which was miserable, but made a gain of +5000% on APL* over the last week. Anything can happen - shareholders usually get screwed, but the exceptions can be epic.

Sorry, my reply is all over the map - I hope it helps. Again, the most important thing is to get access to Clark County Courts and review documents from top to bottom, looking up every unfamiliar term and procedure. If you do this a few times, it'll all become second nature to follow custodianships as they play out.

All my opinion only as always. GLTA!
H