Footstar, Inc (OTC:FTAR) officially approved a Plan of Complete Dissolution and Liquidation on May 5, 2009. Now, more than two years later, FTAR shares are still occasionally traded on the OTC Bulletin Board.
Having gone up 5%, FTAR stock closed yesterday’s session at $0.78 per share, which is still well below its 52-week high reached in February. Close to 93 thousand shares changed hands, marking a new four-week record for the company.
Founded way back in 1961, the Delaware-based corporation is a holding company that is currently following an Amended Plan of Complete Dissolution and Liquidation adopted on May 5, 2009. The company discontinued business operations in December, 2008, while the voluntary petition for reorganization under Chapter 11 had been submitted in 2004. What has since then happened is a complex sequence of acquisitions and mergers, which, in the end, allowed for a drastic change in the status of FTAR.
On Apr.5, 2011, Footstar acquired CPEX Pharmaceuticals, Inc. Shortly after this transaction, FTAR management announced it intended to suspend the Liquidation plan, terminate its registration under the Exchange Act of 1934 and become a non-public company. All these decisions were subject to shareholder approval, which, due to a lack of quorum, was not granted.
As it is, what the future holds for FTAR is an issue even the management has no idea about. Until a final decision has been made, FTAR stockholders will be playing with fire.
