Shares of Grubb & Ellis Company (PINK:GRBE) took a huge nosedive yesterday following a Chapter 11 announcement. Further free-fall is to be expected today.
As soon as GRBE announced it had filed for Chapter 11 prepackaged bankruptcy, investors immediately started shorting their stakes in GRBE. As a result, GRBE slumped by 56% to $0.031 per share, its worst market performance ever. Due to intense trade, a total of 6.45 million shares of common GRBE stock changed hands throughout the day, which is the second highest turnover GRBE has ever registered.
As part of a prepackaged bankruptcy, GRBE also revealed its intention to sell most of its assets to rival Newmark Knight Frank. The latter is an affiliate of the second largest commercial brokerage firm in Sacramento.
Since 1958, GRBE has managed properties in excess of 250 million square feet. However, the company has obviously fallen victim to the huge economic downturn as its managers said they did not have the cash needed to continue as a going concern post-March 31.
