Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:
- quote -

It isn't. META is still trading; today, 3000 shares at
$0.003. It's gone as high as a penny this year.

Seth

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Orak Listalavostok wrote:

- quote -

It's when the Bankruptcy Court says it is. Wait for their
ruling.

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Orak Listalavostok wrote:

- quote -

You'll need to keep on top of things, namely by finding some
source of continuing information re META. Since they're in
chapter 11 however, there's hope they'll recover and emerge
to resume normal operations.

Which is not to say that the stock you hold will continue to
be worthwhile. Part of chapter 11 proceedings is coming up
with a plan to be approved by the judge. This may or may
NOT include cancelling old stock and issuing new (like
KMart). It might even retain the old stock which again will
start to increase in value (like Carmike).

So, as Yogi Berra says, it aint' over, till it's ... over.

Cheer$$$,
Harlan Lunsford, EA n LA

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oraklistal[at]yahoo.com (Orak Listalavostok) wrote:

- quote -

He's looking for a court order approving the plan of
reorganization, which would make your stock officially
worthless.

I checked, and Metatec (META) is currently trading at $0.003
per share, with 200 shares traded today, so there is a
market for it, but the brokers commission would probably
exceed the proceeds of sale.

I also checked the docket on the bankruptcy petition, and
there is motion to convert to chapter 7 (liquidation), which
isn't a good sign.

So it looks like you can't claim a loss in 2003, but may be
able to claim a loss for 2004 if you just continue to do
nothing.

*Dan Evans
*"One is not superior merely because one
*sees the world as odious."
*Francios Rene de Chateaubriand (1768-1848).

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oraklistal[at]yahoo.com (Orak Listalavostok) wrote:

- quote -

By "discharged" he means that the bankruptcy case has been
closed and the debtor (META) discharged. At that point, what
happens to the stock determines whether you have a loss on a
worthless security.

Some typical outcomes are the stock is cancelled, making all
holdings worthless, or the stock is reverse-split, making
small holdings worthless (say the stock is reverse-split
1-for-125: all holdings of less than 125 shares are wiped
out).

He is telling you that until a settlement of the bankruptcy
case has been carried out, the stock still exists and still
might end up being worth something. You cannot claim a
worthless-stock loss on a stock holding that isn't literally
worthless. Since META still trades (as META.PK, last quoted
$0.003/share), it is clearly not worthless.

--
Chris Green

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Orak Listalavostok wrote:

- quote -

Until the bankruptcy is discharged, perhaps; we tell clients
you can't take the loss until you sell the stock or it's
canceled in the bankruptcy.

- quote -

Metatech plans to file a plan of liquidation (which would
dissolve the company and cancel the stock) with the
Bankruptcy Court no later than June 30, 2004. I suspect
liquidation will happen soon after.

If you go to any of the finance sites and can find a quote
(as opposed to a "That stock doesn't exist"), it's not
worthless yet.

Phoebe

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Orak Listalavostok wrote:

- quote -

Actually, rather than "discharged", it's when the stock
becomes worthless. When the backruptcy is discharged,
the stock might become worthless, but it could become
worthless before, after, or never.

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loraklistal[at]yahoo.com (Orak Listalavostok) writes:

- quote -

He's essentially right. The only way to claim a loss
without actually selling the stock is for the stock to
become literally *totally* worthless.

Going into Chapter 11 does not make a stock totally
worthless. Having a trading halt placed on a stock
does not make a stock totally worthless, etc.

On the other hand, having the stock being cancelled
by the bankruptcy court as part of the backruptcy
proceeding would make a stock totally worthless.

- quote -

You keep an eye on the news, perhaps call META's investor
relations dept now and then, etc.

As some alternatives to establish a loss:
(1) Tell your broker to sell the stock. The stock might be
trading on the OTCBB or the Pink Sheets.
(2) The broker may buy the stock off you for a nominal charge as
a customer service. Ask.
(3) Find a non-related 3rd party (like a friend) and just sell
the stock to that person for some nominal amount. Have the
person give you a receipt and you will fill out the appropriate
items on the back side of the stock certificate and send it
to the company's transfer agent. Obviously if you go this
route you'll have to get your broker to ship you a stock
certificate.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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A few years ago, I purchased 10,000 shares of META at 7
dollars/share.

Unfortunately for me, META went into Chapter 11 in November
2003.

I wanted to claim the loss on my 2003 taxes; My $250/hour
accountant told me curtly I can't claim the loss until I
sell it or until META is declared "discharged" (whatever
that is).

I believe him but I never heard of "discharging".

How do I know (when/if) META (is/will) be "discharged"?

Orak

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