Chicken Soup for the Soul Entertainment Inc (CSSEN) Quote

No argument from me. Common shareholders will be wiped out.

For those who have not taken the time for read my profile:

Investment Philosophy: (1) Relatively unpopular large companies (2) Bargain issues; and (3) Workouts

None one should ever expect a "pump and dump" from me.

However, I will continue to post information from dockets and news sources. Some Chapter 11 and Chapter 7 cases I have been involved in have lasted a decade or more, and there are posts that far back.

All of this is immaterial as far as the stock and stockholders are concerned, as their will be no funds for shareholders post-liquidation, and the stock will be cancelled.

The stock is worthless. That will not change. Anyone left holding shares will lose 100% of their investment.

Limited Objection of Chicken Soup for the Soul, LLC to HPS Investment Partners, LLCs Motion for Relief from the Automatic Stay (related document(s)243) Filed by Chicken Soup for the Soul, LLC (8/28/24)

Source: PACER [Docket 284]

Omnibus Objection to (I) Application of the Strategic Review Committee and the Debtors for Authorization to Employ and Retain Pachulski Stang Ziehl & Jones LLP as Chapter 11 Counsel Effective as of June 28, 2024 Through and Including July 10, 2024 and (II) Application of the Chapter 7 Trustee for an Order Authorizing the Retention of Pachulski Stang Ziehl & Jones LLP as Special Litigation and Transactional Counsel to the Chapter 7 Trustee Effective as of July 11, 2024 (related document(s)225, 226) Filed by Chicken Soup for the Soul, LLC, William Rouhana (8/28/24)

Chicken Soup for the Soul, LLC is a non-debtor indirect parent company and creditor of Chicken Soup for the Soul Entertainment, Inc.

Source: PACER [Docket 283]

How Chicken Soup for the Soul entangled a titan of private credit (8/24/24)

https://www.ft.com/content/48306f95-cf86-4634-af24-ca4372ab60df

Meeting of Creditors held 8/20/24.

The Debtors were not represented by management or counsel.

Trustee Miller stated that he was unable to access bank accounts at this time. The case is currently in a standstill until he works either out an agreement with secured lender HPS Investment Partners or the Court gives him authority to deal with assets.

Kiosks must stay put for now.

It is highly unlikely that the trustee will need to retrieve the kiosks.

Motion for Relief from Stay (FEE) Motion Of CVS Pharmacy, Inc. for an Order Modifying the Automatic Stay Pursuant to 11 U.S.C. §§ 105(A) and 362(D) to Permit CVS Pharmacy, Inc. to Remove and Dispose of Kiosks. Fee Amount $199. Filed by CVS Pharmacy, Inc.. Hearing scheduled for 8/13/2024 at 10:00 AM at US Bankruptcy Court, 824 Market St., 3rd Fl., Courtroom #7, Wilmington, Delaware. Objections due by 7/30/2024. (7/16/24)

Source: PACER [Docket 144]

Certificate of No Objection regarding CVS Pharmacy, Inc.'s Motion for Relief from Stay (related document(s)144) Filed by CVS Pharmacy, Inc.. (8/02/24)

Source: PACER [Docket 200]

Motion to Shorten and Limit the Notice with Respect to Walmart Inc.'s Motion for an Order Modifying the Automatic Stay to Permit Walmart Inc. to Remove and Dispose of Kiosks (related document(s)202) Filed by Walmart Inc. f/k/a Wal-Mart Stores, Inc. (8/02/24)

Source: PACER [Docket 203]

The Kiosks have been shut down and will be removed once the receiver figures out where to move them to and how to pay for that. The costs will come out of the liquidation proceeds, but since the company has limited assets, it will take some time to get the cash needed to do that. Almost certainly they will end up being scrapped.

Walmart, CVS and other retailers that provided space have been filing motions to remove and dispose of kiosks.

I haven't really followed the saga here since a couple years years ago when they announced an insane buyout price for Redbox, which of course never materialized and that's when I sort of lost track of this company. Oddly enough these Redbox kiosks are still all over the place. Why are they still in existence in who is flipping the bill for them?

This is the usual process for Chapter 7 companies. The stock price does decline slowly, and volume dries up, but the stock price remains above zero when it is finally cancelled.

The market is not that efficient. Many investors, particularly penny stock, Meme and MOMO investors, really don't understand how the market works and don't understand that Chapter 7 does require the stock to be cancelled. By law, the company cannot continue beyond the liquidation, although the stock may limp along until FINRA gets around to terminating trading.

There is also the issue of short positions. The current short position is over 600,000 shares. Obviously anyone short this stock will (eventually) see a 100% return on their short when the stock is cancelled. However, that timing is uncertain, and shorting is not free. They have to pay money to borrow the shares to short, and if the stock hangs around long enough that cost may exceed the value of their short position. So, they will cover from time to time and close out their positions and lock in their profit. Also, the stock they borrowed may be pulled back by the underlying owner, so the shorter may have to repurchase shares in the open market if they can't find new shares to borrow. That also contributes to trading volume.

Fundamentally, the stock is worthless now as there is zero chance the shareholders will receive anything in the liquidation. But, stocks don't trade purely on fundamental value, and you are seeing that here.

How is this stock still considered having any value if chapter 7 bankruptcy has been filed and the shares will be canceled and deemed worthless?

Trust me, I know.

However, I plan to be here for a long time.

Under Chapter 7, the common stock will be cancelled. Guaranteed. By law, the Company will terminate once the liquidation is complete.

The common shares will be wiped out without any payment to shareholders. It will go to zero, and anyone left holding common shares will lose 100% of their investment.

Letter Regarding Trustee's Notice of Termination of Employment Upon Conversion to Chapter 7 Filed by George L. Miller (7/30/2024)
Please take notice that I am the duly appointed and acting interim Chapter 7 Trustee (the “Chapter 7 Trustee”) for the bankruptcy estates of Chicken Soup for the Soul Entertainment, Inc. et al, Case No. 24-11442 (TMH), and its affiliated debtors (collectively, the Debtors”) 1 which are pending in the United States Bankruptcy Court for the District of Delaware. The Debtors’ bankruptcy cases were filed on June 28, 2024 (the “Petition Date”), seeking relief under Chapter 11 of the Bankruptcy Code (11 U.S.C. § 101 et seq.) and were subsequently converted on July 10, 2024 (the “Conversion Date”) to liquidation cases under Chapter 7 of the Bankruptcy Code. Upon conversion to Chapter 7, the Bankruptcy Code does not permit the Chapter 7 Trustee to operate the Debtors’ businesses. Accordingly, the Debtors ceased operating upon conversion to Chapter 7 and all employees were terminated by operation of law effective as of the Conversion Date.
Source: PACER [Docket 192]

Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors & Notice of Appointment of Interim Trustee George Miller with 341(a) meeting to be held on 8/20/24 at 11:00 AM at Zoom - Miller: Proofs of Claims due by 9/18/24. Government Proof of Claim due by 1/6/25. (7/22/24)

Source: PACER [Docket 158]

Appointment of Trustee George L. Miller Filed by U.S. Trustee. (7/11/24)

Source: PACER [Docket 130]

Notice of Conversion from Chapter 11 to Chapter 7 (7/11/24)

Source: PACER [Docket 125]

Those trades were most likely short covering. Shorting is not free, and the people that shorted those shares already made a lot of money on the recent decline. Although the stock is going to go to $0, they don't want to pay the borrowing fees in the meantime to make that little extra.

Volume is decreasing daily. Soon it will likely be just a few thousand shares a day, and then when the shares are cancelled, nothing.

There was
a buyer and seller of 3 block trades of 100,000 each and one for 200,000
so those traders cant read? Ridiculous. Also level 2 shows a bid at .0165 of 100,000 shares,
who is that ?

Waiting for a run? From who? Idiots who can't read and somehow think the stock will have any value in a Chapter 7 liquidation? There are going to be a lot of sellers looking to bail out at any price before the stock gets cancelled and they lose everything. Many of them will be happy to take any price they can get above $0.

Something else to consider. A lot of shareholders were burned in the Redbox bankruptcy and learned their lesson there. They are highly unlikely to fall for the internet pumping and dumping a second time. They got fooled once into buying and holding Redbox waiting for that "run", but they won't get fooled again.

Regardless

the stock will still trade and with so few shares waiting for at run.

Yes, they can. But that is meaningless for the shareholders in regards to the value of the stock. The stock is going to zero, guaranteed. It will be cancelled under Chapter 7 with no payments to shareholders.

Even if any lawsuit against the Board is successful, it won't generate any funds for shareholders. The money would go towards making the creditors whole, and that is a massive nut to crack. The liquidation of the assets will bring pennies, and they need dollars to satisfy all of their liabilities and debt. Only after creditors receive 100% of what they are owed will shareholders get what is left, and that will not happen here. But even if it did and any lawsuit was successful and magically found enough money to pay off all the creditors in full AND provide additional money for shareholders, that money would be paid to shareholders as of the date of the malfeasance, not shareholders as of the final liquidation of the assets. In other words, it doesn't matter if a person owns the stock from this point forward or not. Buying the stock now would not get a person into the lawsuit - that has passed.

Former board of directors
could be charged with misappropriation of funds and sued, this case far from over.
The volume is only 96,758 interesting .

No hope for the stock. It will be worthless.

The Company requested to the Court that its Bankruptcy be converted from Chapter 11 to Chapter 7, which the Judge indicated he would approve. Chapter 7 is automatic liquidation. The common shareholders are dead last in line for assets, and since there is ZERO chance of having enough assets to pay off the massive amount of liabilities and debt, there is no chance that shareholders will receive anything at the conclusion of the bankruptcy process.

Bid .017 ask .019
So it was 10 cents after they filed Bankruptcy now below 2 cents, with only 24.8 million shares outstanding, waiting for a squeeze here.

Could anyone tell me , what happens to the stocks of CSSEQ that people bought ? sell with loss or hold ?

CSSE changed to CSSEQ, bankruptcy. Delisted from the Nasdaq to the OTC. Hmmmmmm, stock ran to .165 from .12 pre-market then dropped to .07 on the BK news. Ya think some criminals ran the stock before the BK announcement? Well, DUH.

https://otce.finra.org/otce/dailyList?viewType=Additions

Chap 11 news. The parent company of Redbox, those distinctive, red-colored kiosks at grocery stores that sell or rent DVDs, has filed for bankruptcy after enduring months of financial struggle.

Chicken Poup.

Bankruptcy???

Was_this_a_meme_stock_in_2021? $42 a share?!?!?

Para just got 26 billion dollar buyout

ALYI is my weeeeee!

Weeee .40

grabbed some today.

Back to .13?

Yes after hours sell off was rough. Thankfully I was a seller today and not a buyer.

Still holding some (just in case)

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Z

It’s worth more dead than alive

Huge continuation, took a few more chips off the table. News sends this parabolic

Let’s go csse!

Soups on .3322

That was fun.
Next!

CSSE: And NOW, of course, see present 'CHART' below!!!


"Hey, Invest, where-the-fluck did my CSSE shares go???!!! And, by the way, I did NOT enjoy that CSSE CHICKEN Chow you fed me for breakfast, either, Human Being Clown!!!"

CSSE: It appears that you were CORRECTO-MUNDO, Homeboy!!! (Hey, TripN, see below right now what my San Diego Lady Friend has to say about our little CSSE play today!!!)


"Hey, Trip-Nik, ya wanna help us SHORT-SQUEEZE this little CSSE puppy today, Homeboy???!!!"
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Always add when they run flat added for month in my small mind they to big to fail guess it worked out

CSSE: Hey, Admiral Trip-Nik, did you FRONT-LOAD this puppy with a $100K toss at it????!!!!! (If so, Bro, then MUCHAS GRASSY ASK, as they say in Espaniolla!!!)

CSSE: Nope!!! More like $5.00!!! (Heck, they gots GOURMET Chicken Soup, Homeboy!!! This Firm ain't no Taco Bell, Bro!!!)

Like a big fat pig weee weee weee all the way home