MiddleBrook Pharmaceuticals, Inc (fka MBRKQ)

[poloran]

Over the weekend, I spent time trying to figure out whether I should keep my investment in Middlebrook or not. I’ve never invested in a liquidation before, so much of this is new to me. Here’s how I understand the situation as reflected by the most recent filings:

cash $18.3 mm

post petition
post petition payables 0.440 mm
other post petition liabilities 1.344

pre petition claims
unsecured priority claims 3.001 mm
unsecured non-priority claims 2.200
Par claim (max.) 3.500
Gleacher payment 0.600
Est. of operating expenses (Sept to Feb) 1.000
Seneca Parkway claim 0.400
Remaining cash for equity 5.819 mm

MIP payment 0.000
# of shares 86 mm
Value per share $0.68

If Par claim is disallowed, add $3.500 mm
Cash, net disallowed Par claim 9.319
MIP 0.750
Remaining cash for equity 8.569
Value per share $0.990

Share price on October 9th $0.880

If this is correct, the upside is 13.2%
and downside is 34.1%

I am interested to hear what other investors who know this name better than I think. If, however, this analysis is correct, I'm not sure I want to let my investment ride on an arbitration ruling in January 2011.