Is CCTYQ dead forever or is it going to be worth something

alanj answered 4 months ago …

Below is the latest SEC filing in almost it's entirety. It sounds as if the investors are not going to be paid at least not out of the proceeds of the sale of the Canadian operations.

On July 1, 2009, Circuit City Stores, Inc. (the "Company") completed the sale of its Canadian operations. A subsidiary of Bell Canada ("Bell") acquired substantially all of the assets of InterTAN Canada Ltd., an indirect, wholly-owned subsidiary of the Company that operated retail stores and dealer outlets in Canada primarily under the trade name The Source by Circuit City. Additionally, Bell purchased certain trademarks from Circuit City Stores West Coast, Inc., a wholly-owned subsidiary of the Company, and the equity shares of a global sourcing company from Ventoux International, Inc., a wholly-owned subsidiary of the Company. On November 10, 2008, InterTAN Canada Ltd. received creditor protection from the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (the "CCAA"). Bell entered into the asset purchase agreement pursuant to the court-monitored sales process. Under the terms of the asset purchase agreement, the purchase price for the transaction is $116.8 million (the equivalent of C$135 million), plus $30.3 million (the equivalent of C$35 million) for working capital . The consideration for working capital is subject to closing adjustments. Of the proceeds, $15 million has been paid to the Company for the trademarks and the shares of the sourcing company. The remaining proceeds of the sale first will be used to settle the claims made against InterTAN Canada Ltd under the CCAA. Any remaining proceeds will be distributed to the Company. The Company continues to anticipate that no liquidation payments will be made to its equity security holders.