DEST paid off all their bank debt.
Their NOLs were worth ~$200M which at the current tax rate of 20% is worth about $40M. They have a mountain of liabilities and claims (~$32M), most of which will be either rejected or reduced drastically (which why they are in BK).
Marquee Brands paid $50M to buy all of DEST's assets (except the NOLs) and they appear to be making profits off of this brand via internet sales. The fact that MB invested $50M in DEST already, suggested to me that they might be interested in obtaining and using DEST's NOLs (which is why I purchased this stock in the first place).
There are still many months ahead of court procedures before this case is closed. But the closer we get to seeing their POR, the more speculation will increase and perhaps this is the reason DESTQ sp has been increasing lately.
Its been a long hold for me, but the potential reward could be well worth the wait. I'm anticipating a merger between MB and the empty shell (except for the NOLs) of DESTQ. If this is what actually happens, DESTQ (as reorganized) will be much more valuable than it currently is. At its current market price, DESTQ market cap is about $400K. MB's revenues are estimated to be around $3B for all of their brands combined.
