MiddleBrook Pharmaceuticals, Inc (fka MBRKQ)

[Madclown]

That’s a good question. This is supposed to be a straight cash liquidation. That’s basically all that’s left. I believe we have a few employees, a building lease, some receivables, some deposits, a pile of cash in the $18 million range and some pre and post-petition liabilities. However, it is interesting to note that the company has Federal and State NOL carry forwards of approximately $236.2 million and $186.3 million respectively. It would be a shame to see those wither on the vine.

There were some insiders that made an 11th hour play for a whole company buyout, literally hours before the gavel went down approving the sale of the assets. I am assuming that the would-be purchasers had assigned some value to $236 million in NOLs but I can’t be for sure. They are, without a doubt, one of the most complicated assets to accurately value.

I don’t know for certain whether there is anything to do in this case as far as NOL preservation. I am just not sure if “liquidation” and “shell company reverse merger” are compatible situations. It is my understanding that there are some folks on IHUB that do specialize in these things. If you (or anyone else reading this) are in contact with any of them, feel free to mention our situation and see if they can provide some guidance. It might even spark some renewed interest in the stock. If we had enough interest in the stock I might be convinced to update the MBRKQ case summary as events unfold.