WebVan: A Bust For Shareholders
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Webvan Group Inc., which is in the process of liquidating its assets under bankruptcy protection, disclosed on Monday that it doesn't expect to have enough cash to distribute any money to its shareholders.
On Monday, the company said it has already contacted over 60 potential parties and anticipates that several interested parties will submit offers by the Aug. 27 deadline.
However, in its statement, a company spokesman said "based on our preliminary analysis of the likely recoveries on our assets versus the expected claims against those assets, we do expect to have funds available for distribution to our unsecured creditors. We do not expect, however, to have any funds available for distribution to our equity holders."