TSCC Update

The Technology Solutions Company liquidation arbitrage has been remarkably successful. On May 1st the Company made its initial liquidating distribution for $2.15/share in cash, an amount that was much higher than the Company's original $2/share estimate. Moreover, the Company has already appointed a trustee and expects to collect its remaining net assets receivables over the next couple of months. When that process is completed the Company should make an additional liquidating distribution of about $0.33/share (hence the current share price), an amount that would place the total liquidation proceeds around $2.48/share, which is consistent with the Company's original liquidation estimate of $2.47/share. When I originally wrote about the TSCC liquidation arbitrage in mid-March the stock traded for $2.12/share. The initial liquidating distribution has already made the trade profitable by $0.02/share, thereby removing all the downside risk (just as predicted) Moreover, the remaining $0.33/share distribution will bring the total dollar profit to $0.36/share, thereby yielding16.98% in less than 5 months, or 40.75% on an annualized basis and with virtually no risk.