HOUSTON, May 20, 2022
/PRNewswire/ -- Luby's, Inc. (NYSE: LUB) (the "Company"), which is
liquidating and winding down pursuant to a plan of liquidation and
dissolution (the "Plan"), is reminding holders of the Company's
common stock that, in connection with the transfer of the Company's
remaining assets and liabilities to a liquidating trust to be known
as LUB Liquidating Trust (the "Trust"), the last day of trading of
the Company's common stock on the New York Stock Exchange (the
"NYSE") will be Friday, May 27, 2022.
The transfer of the Company's remaining assets and liabilities to
the Trust is expected to occur at 5:00 p.m.
Eastern Daylight time on May
31, 2022. At such time, holders of the Company's
common stock will automatically receive one unit in the Trust
("Unit") for each share of the Company's common stock held by such
holder. As previously disclosed, Units will generally not be
transferable except by will, intestate succession or operation of
law. For tax purposes, the fair value of each Unit in the Trust
received by Company stockholders at such time, which reflects the
value of the remaining assets of the Company (net of liabilities),
will equal the average of the high and low trading prices for
shares of the Company's common stock on the last three days on
which the shares are traded on the NYSE.
For a discussion of the tax consequences of the transfer of the
Company's assets to the Trust and the distribution of the Trust
Units to the stockholders, please see "Material U.S. Federal Income
Tax Consequences of the Proposed Dissolution - U.S. Federal Income
Tax Consequences of a Liquidating Trust" beginning on page 48 of
the definitive proxy statement filed by the Company with the
Securities and Exchange Commission on October 6, 2020, in connection with the
Plan. Stockholders are strongly advised to contact their
investment and tax advisors.
The Company has sold all of its operating divisions, and sold
the majority of its real estate, except for 17 properties, all of
which it continues to market for sale. The Company also has certain
financial instruments it has received as the result of its
liquidation process. The Company has no debt outstanding other than
certain payables and various non-funded debt liabilities.
Inclusive of the distribution being paid on May 24, 2022, the Company has paid aggregate cash
liquidating distributions of $2.70
per share.
About Luby's, Inc.
Luby's, Inc. (NYSE: LUB) previously announced its plan of
liquidation and dissolution, which was approved by its stockholders
on November 17, 2020. Luby's has sold
both its restaurant brands, Luby's Cafeterias and Fuddruckers, as
well as its Culinary Contract Services business segment.
Luby's is actively seeking buyers for its remaining real estate
assets.
Forward Looking Statements
This press release contains statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements contained in this press
release, other than statements of historical fact, are
"forward-looking statements" for purposes of these provisions,
including the statements regarding sales of assets, effects of the
Plan, expected value or proceeds attributable to the sale of
assets, and expected proceeds to be distributed to stockholders or
the timing thereof. Luby's cautions readers that various factors
could cause its actual financial results to differ materially from
those indicated by forward-looking statements made from
time-to-time in news releases, reports, proxy statements,
registration statements, and other written communications, as well
as oral statements made from time to time by representatives of
Luby's. The following factors, as well as any other cautionary
language included in this press release, provide examples of risks,
uncertainties and events that may cause actual results to differ
materially from the expectations Luby's describes in such
forward-looking statements: general business and economic
conditions; the effects of inflation; and other risks and
uncertainties disclosed in Luby's annual reports on Form 10- K and
quarterly reports on Form 10-Q, including information regarding the
risks, uncertainties and other factors relating to the Plan, the
expected net proceeds from the sale of assets, and expected
proceeds to be distributed to stockholders.
For additional information contact:
John Garilli, Interim CEO
LInvestors@lubys.com
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SOURCE Luby's, Inc.
