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Footstar


modeljc
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Looks like Footstar has approx. $1.76 left to pay out and is trading for $1.00.

 

4.3 million shares have traded since the May 5th 2009 $2.00 distribution or

approx. 20% of the shares outstanding. When you read the following you wonder

if the new owners of this stock will receive the final distribution.

 

Form 8-K for FOOTSTAR INC

 

5-May-2009

 

Other Events

 

 

Item 8.01. Other Events.

 

On May 5, 2009, a Special Meeting of shareholders of Footstar, Inc. (the

"Company") was held at the Company's headquarters at 933 MacArthur Boulevard,

Mahwah, New Jersey 07430. At the Special Meeting, the Company's shareholders

adopted and approved a plan of complete dissolution and liquidation of the

Company as outlined in the Company's definitive proxy statement which was filed

with the Securities and Exchange Commission on April 6, 2009 (the "Plan").

 

Also on May 5, 2009, the Company filed a Certificate of Dissolution with the

Secretary of State of Delaware.

 

As of the close of business on May 5, 2009, the Company is closing its stock

transfer books and will no longer record transfers of shares of its common stock

(the "Final Record Date"). Certificates representing shares of the Company's

common stock are not assignable or transferable on the books of the Company

after May 5, 2009 except by will, intestate, succession or operation of law.

From and after May 5, 2009, and subject to applicable law, each holder of the

Company's common stock will have the right to receive distributions pursuant to,

and in accordance with, the Plan until the final liquidation distribution is

made.

 

The previously declared $2.00 per common share cash distribution will be paid on

May 6, 2009 to holders of record at the close of business on April 30, 2009.

 

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Does anybody know if NEW owners of this stock will receive any distributions?

 

 

Thanks,

 

John

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When you read the following you wonder if the new owners of this stock will receive the final distribution.

 

I think they will.  The Company and its transfer agent can't keep the market-makers on the OTC markets from accepting trades in the stock.  The changes in ownership may not be tracked by the transfer agent, but the OTC market makers will redirect any further distributions to the correct owners based on subsequent trades.  I'm seeing this with another similar situation -- MAIR.PK.  They closed their shareholder rolls last summer after shareholders approved their plan for liquidation/dissolution and made an initial $3 per share distribution.  Even though I purchased more shares after the close date, I've received both of the two subsequent distributions.  At some point, MAIR just stopped trading.  Same thing will happen with FTAR -- but until then I think any new owners you mention will be fine.

 

wabuffo

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"Looks like Footstar has approx. $1.76 left to pay out and is trading for $1.00."

 

I looked at this situation recently because of this gap, but I found the following:

 

1- More severances or $11.4 M are to be paid to existing employees or $0.53 a share.

2- They will establish a reserve for contingencies. The size has not been disclosed.

 

Unless I understood wrong, I think that future distributions are in the $1.20 range and that is assuming that they will close shop quickly. If they don't, they may incur losses which will eat cash.

 

Cardboard

 

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