$BBBYQ - Emerging Entity I firmly believe there’s enough circumstantial evidence to assume that, on the balance of probability a carve out of Buybuybaby is occurring and we are correct in the ongoing thesis that equity will be preserved through an emerging entity which will utilize the $1.6bn in NOL’s and delivery value to $BBBYQ shareholders and creditors. To explain this, I can’t give you a simple one sentence in a docket that proves it, due to the complex nature of this billion-dollar Chapter 11, with strong indications of fraud, 380+ redacted hours of legal services and thousands of dockets, we need a holistic analysis of all contributing factors pointing to a likely outcome. 73 dockets were filed this week, which had Post Confirmation information, the most interesting part was the Plan Administrators estimate to when a final decree would be issued on 8 subsidiaries out of the 73 that were filed, with the remaining 64 subsidiaries given a more near term estimate of December 2024. This is exciting to see, as it discredits the pocket watchers’ theories of the Chapter 11 being complete and that we’re heading into Chapter 7 liquidation and that will be the end, au contraire, because even the Plan Administrator can’t give an estimate to the end of this reorganization, let alone uninformed and uninvested pocket watchers. While the Plan Administrator commented that he is unsure when the final application to close the chapter 11 bankruptcy cases will be filed. The date December 31, 2026, is just a temporary guess. The actual date will depend on various factors like the length of legal proceedings, asset collection, claim settlements, and the winding down the process. But what do those 8 subsidiaries have in common? Source:sec.gov/Archives/edgar… As pictured above 7/8 of them are Subsidiary Guarantors for the October 2022 note offerings by $BBBYQ. The ninth entity is Bed Bath & Beyond inc. which is now 20230930-DK-BUTTERFLY-1. Interestingly, the notes were offered exactly 60 days after Ryan Cohen sold his position, could there have been a cooldown period he was waiting for before buying convertible bonds in $BBBYQ? Would this explain why Ryan Cohen is listed as a creditor in the dockets? To me, these correlated activities seem to infer that a creditor has control over the outcome of these subsidiaries, which is why the Plan Administrator can’t comment on the completion of their wind down attempts. Here’s some key reminders that support the emerging entity via carveout theory: - Ryan Cohen stated in his letter to the $BBBY board that Buybuybaby was extremely undervalued and projected it could be transformed into “The Ultimate Destination for Babies” - Buybuybaby.com didn’t trade for 126 days post IP sale, as a comparison Overstock began using the Intellectual Property within 14 hours. Why lost 1/3 of your annual revenue? - Buybuybaby Inc. hasn’t been renamed, the way that 20230930-DK-Butterfly-1, Inc. is formerly Bed Bath & Beyond Inc, are we correct in assuming it’s a shared service agreement? - Go Global Retail offered up to $60M for IP rights and assets in Buybuybaby, however the debtors allowed a much lower bid of $15.5M for just the IP rights to be sold to Dream on Me, despite this being a value maximising Chapter 11. - Sixth Street were in negotiations with Patty Wu for Baby in a Stand-Alone Basis/Scenario, referenced in Docket 2040. Did they suddenly lose interest? Unlikely. - Holly Etlin mentioned recently on a Round Table panel that Sixth Street were still seeking recovery on their investment as DIP lender in $BBBYQ - Sixth Street own 87% of the current secured debt and have positioned themselves to do so. Buybuybaby is reported to be planning to open up to 100 stores within three years, reported in November 2023, one week before the website went live again source: modernretail.co/operations/ins… Given the ambitious scope of this operation, aimed at rebuilding the brand to nearly its pre-Chapter 11 stature, considering there was a 126-day delay before resuming trading. This interval likely indicates that extensive negotiations and restructuring within the corporation were underway. Key focus areas during this period probably included legal and organizational restructuring, as well as addressing these securities-related matters: Docket 2727 Page 9 . Code [B120] is Asset Analysis and Recovery. Preservation of BBBY ticker for estate and conduct legal research into intellectual property rights in stock tickers, these are discussed nearly a month after the intellectual property rights auctions concluded. Could this be why Overstock had to use the ticker BYON because BBBY have preserved the ticker? Why are they researching intellectual property rights in stock tickers anyway? The bankruptcy judge wouldn’t sign off these legal services if they weren’t relevant to the outcome. Also as confirmed by Delaware flings and the Buybuybaby website, the owners of Buybuybaby are listed as “BBBY Acquisition Co LLC” which I believe is a placeholder name for a SPAC while the finished corporate entity is completed. Why name the company after the ticker? Lastly and most importantly, Docket 2163 page 8: This is AlixPartners completion fee and tasks completed, filed 2 days before the plan was confirmed. “Preserve value and transfer a significant portion of the company’s assets to its creditors?” Where? The creditors have accepted a plan that gives them 0-2.5% projected recovery? Where is this waterfall distribution of proceeds? I believe the credit bid is coming, the third amended plan is coming, debt for equity is coming and shareholders will also be coming. Jake2B/@jake2b has highlighted many times the amount of work that has gone into the NOL’s, the business enterprise continuity requirements have been satisfied. The value of the NOL’s until February 2023 is the same amount as the current secured and unsecured debt of $1.6bn. This is the only way Sixth Street make the best recovery on this investment. 🔁Please Repost if this titillated you.
