Palm Harbor Homes (fka PHHMQ)

[cosmicschool]

It could pan out either way but unfortunately, the latest filings on pinksheets (8K and NT-10Q) seems to point out "Extinguishment of Equity" at No VALUE..

Delineated below are CONTENTS from their NT-10Q filed nn February 7 2011.

http://www.otcmarkets.com/stock/PHHMQ/financials

PART III
NARRATIVE

As previously disclosed, on November 29, 2010 (the "Petition Date"), Palm Harbor Homes, Inc. (the "Company") and certain of its domestic subsidiaries (collectively, the "Debtors") filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington (the "Bankruptcy Court"). The Company has been advised by Ernst & Young LLP ("E&Y"), the Company's independent public accountants, that E&Y will not be able to commence its review of the Company's quarterly financial information to be included in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended December 24, 2010 (the "Form 10-Q") until it is formally retained pursuant to an order of the Bankruptcy Court. As a result, E&Y has informed the Company that the earliest that E&Y will be able to commence its review is February 18, 2011. Accordingly, it is highly unlikely that the Company will be able to file the Form 10-Q, which was required to be filed on February 7, 2011, prior to the sale of the Company pursuant to an auction to be conducted by the Bankruptcy Court which is currently scheduled to occur on March 1, 2011.

As previously disclosed, as of January 31, 2011, the Company projects that it will have approximately $155 million of debt (both pre-petition and post petition, the "Liabilities") by the time the auction concludes and the sale closes. Accordingly, assuming that strict payment priorities under the bankruptcy code are applied to distribution of the sale proceeds (and that some or all of such Liabilities are not otherwise assumed by the successful purchaser) holders of common equity would likely not be entitled to receive any recovery on account of their equity until all such Liabilities are first paid. At present, the Company's "stalking horse" purchaser has submitted a bid under its asset purchase agreement of approximately $50 million plus the assumption of certain obligations. The auction is scheduled to occur on March 1, 2011. Accordingly, following the sale, it is likely that the Company's current equity will be extinguished for no value. For the reasons stated above, the Form 10-Q may not be filed prior to any extinguishment of the Company's equity interests. Once the Company no longer has any outstanding equity securities, it will seek to suspend its obligation to file periodic reports with the Securities and Exchange Commission.

On February 2, 2011, the Debtors filed a Form 8-K with the Securities and Exchange Commission that included the monthly operating report for the period from November 30, 2010 to December 24, 2010 which the Debtors had filed with the Bankruptcy Court on January 28, 2011.