Southeast Banking Corporation (fka STBPQ)

[MU_Redskin1]

I found this DD information based on me100's (Harvey) suggestion that ESGR could be a similar case study to our STBP situation. The stock reached a high of $135.02 before the recent collapse and now trades at $57.72. http://investorvillage.com/smbd.asp?mb=1070&clear=1&pt=q

Enstar came out of bankruptcy as a shell company and has built a solid business.

Best to all good luck and good investing ... MU_Redskin1


Enstar Bankruptcy (ESGR)

http://www.gilardi.com/pdf/eginot.pdf


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Enstar announces future distribution of new stock
Business Wire, August 28, 1996
MONTGOMERY, Ala.--(BUSINESS WIRE)--Aug. 28, 1996--The Enstar Group Inc. ("Enstar") announced that it has resolved all issues relating to its 1995 income tax returns.

As a result of the resolution of its 1995 income tax issues, Enstar will be able to repay its remaining creditors from its bankruptcy, in full, with interest. After Enstar's bankruptcy creditors have been paid in full, Enstar will have $35 to $40 million in net worth, based on the current market value of its assets, which consist primarily of stock in First Union Corp. Therefore, Enstar will be in a position to issue new stock to former shareholders who owned Enstar stock on June 1, 1992, in accordance with its bankruptcy plan. (On June 1, 1992, the common stock of Enstar was cancelled pursuant to its bankruptcy plan.)
Enstar will seek bankruptcy court approval of a procedure to notify and identify former shareholders entitled to receive the new stock. Enstar anticipates that it will send notification and claim forms to former shareholders in late September and issue and distribute its new shares to qualifying former shareholders in early 1997.

CONTACT: Enstar

Amy Dunaway, 334/834-5483

COPYRIGHT 1996 Business Wire
COPYRIGHT 2004 Gale Group

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http://www.bizjournals.com/jacksonville/stories/1997/10/13/story6.html

Friday, October 10, 1997
Dahl, Davis buying up Enstar stock
Jacksonville Business Journal - by Jane Bennett
Local investors James Dahl and Wayne Davis are buying heavily into Enstar Group Inc., a Montgomery, Ala.-based shell company.

Enstar is sitting on a pile of cash and stock and is looking for companies to acquire.

Davis, who owns 94,036 Enstar shares, is a director of the company, along with Christopher Flowers, a partner in the prestigious New York brokerage firm Goldman Sachs & Co.


Enstar (ESGR:Nasdaq Bulletin Board) has assets of $4 million in cash and holds 1.3 million shares of First Union Corp. stock, worth about $53 million at the bank's current stock price. "And it (Enstar) has no debt," Dahl said. In addition, the company earns $1.7 million a year on the $1.28 a share dividends paid by First Union.
In July, the company announced plans to buy back $5 million of its own stock. That hasn't started yet, Dahl said, "but every insider is buying stock." The company has 4.5 million shares outstanding. Insiders own 449,509 shares, or 10.06 percent.

A shell company has no active operations. "Usually they are registered companies with NOL's, or net operating losses, that they can carry over to offset future income," said Don Wiggins, professor of accounting and finance at the University of North Florida. Enstar has a net operating loss of $96 million, Dahl said.

Enstar formerly did business as KinderCare Inc., a day-care center company backed by venture capital from Wayne Davis' father. Davis did not return phone calls for this story.

In 1989, Enstar disassociated itself from KinderCare and became a publicly traded company that specialized in low-priced women's clothing stores such as Simply 6. Enstar filed for bankruptcy in 1991 and a year later canceled its common stock.

In 1995, the company sold one of its assets, American Savings and Loan of Florida in Miami, to First Union Corp. in a stock swap that brought Enstar the 1.3 million shares it now owns.

The company went public a second time in March, and since then the stock price has steadily climbed from $9.39 to Tuesday's $14 closing price.

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I believe this article may support the theory about the value in STBP.PK ......