20260930-DK-BUTTERFLY

Three years isn't that long we could do another three Another seven yeah 23 or 930 decay but I look forward to part 862 of your videos and we're still here trying to work out when the fuck Ryan's gonna press the button No, no more. We're done at nine. That's that's it. That's all It was nine videos for class last nine so anything else we're flying in the dark I believe in you Jay come show you'll find some other term So I wanted to host this space today as a refresher some key reminders in the trauma bonding experience that we've all enjoyed together since 2023 now like many of you I want this to be over I have bitches to feed Dating fine females in London is quite expensive. I have business plans that I want to effectuate I have goals that I want to work towards and the resolution of this investment that I made over three years ago Is a stepping stone to the next chapter of my own life however at the same time I'm also conscious and aware of the fact that there's moving parts beyond the scope of the public eye Which may need to be resolved before a safe legal and compliance resolution to this situation can be administered so We're pretty much running on the fly here today. I don't think we need too much preparation Jake which can do some back and forth People did have some questions which I'll go over shortly to which were inside the Fred if anyone's got any comments or questions through the space as we go dropping down in the nest or whatever the fuck it is and We'll try and cover them as we go But yeah, we'll go back and forth. We'll go over some of the logical Regularities that have happened within the chapter 11 any of the indications that we're correct and we can have a rational Reasonable discussion around why we're still so optimistic despite many years passing since we were delisted and renamed If I think back to 2023 and if I just recall The final decree which started to appear at the bottom of the PCRs for the entities that we believe may have been carved out as subsidiary guarantors which were associated with the notes and many of them had a place hold a date of December 31st 2026 which is only 94 days away now for fuck's sake bad the time I felt wow that's ages away Why can't the plan administrator estimate a final decree at that point just for those entities the eight or so Surely it's just a straightforward liquidation right? That's the public narrative which we've consumed for the past three years But what if it isn't what if this wasn't simply another company that was due to be cellar box to the grave by insidious bad actors corrupt C-sweets naked short sellers what if this was a company destined and prepped for its demise But a white night stepped forward halfway through the transformation of another cellar box target company and he took action Why if he took the initiative to prepare financial accountability through complex priority debt structures and deliver accountability While also making a load of money for himself and loyal shareholders at the same time That's what I'm here for that's what I believe happened and I think we've got overwhelming amounts of circumstantial tangible intangible evidence to suggest that this hypothesis is correct and Jake I just recall a few years ago. I remember speaking to not too long ago I said what's what's one of your favorite spaces and you said one of your favorites was the one way we were delisted At that time and if you listen back to I think it's on the Spotify somewhere We were in pure unknown territory. We hadn't learned much of the research we have today We were just excited to be removed from the clutches of the DTCC and Potentially provide us a new pathway to a fairly tradable equity So Jake what were your thoughts around the time of the listing and renaming a few years ago? Can you recall what was going for your mind positive negative? Yeah, I mean one of the things that really stood out to me was that the shares were cancelled altogether and stopped trading didn't move to the expert market didn't move anywhere You know there are other Companies that go through chapter sevens or chapter 11s and they stay they stay trading whether it's out of fraction of a penny or Whatever they just continue to exist in perpetuity and and that didn't happen That was the biggest thing that immediately stood out to me and then there was a handful of others. Can you hear me? Okay, yeah, I can hear you great. Okay, perfect And then there was a few other things in and around that timeline that also really stood out You know, maybe not even realizing at the time. Why? But one of them was that the You know the the request was made to the court to wave the two-week Automatic stay after plan confirmation and I'm paraphrasing but the language in the plan was to Effectuate the various transactions contemplated by the plan Which you know immediately? I think we sniffed out as as having potential there and I mean to this day We haven't really seen come to fruition or be finalized right? So what on earth were they talking about on what grounds was that Granted by the by the court there are lots of other things that have been granted by the court They were kind of not making sense at the time like the NOL order lots of other things right but To find out that in that period of time specifically between The 14th and the 22nd because we found out later on after the cancellation that all of these changes happened on the 21st the majority of them The renaming of the parent company of the old parent company to have you know the butterfly name in it What was kind of odd hilariously the date? Potentially having been there the entire time is it's just perfect. It's so funny But looking back to see all of the changes that had happened that weren't necessarily Publicly disclosed to the fullest extent. I think that stood out to me a lot Looking back that it didn't make much sense a lot of what was written in the plan a lot of what was said a lot of what was Ruled on by the judge as being allowed Wasn't really happening and so that obviously peaked my interest from the beginning That was something that I really thought really validated the idea that there was more here and then over time obviously we've uncovered A good chunk more which we can review today But there were a lot of things that you know I think it also took a long time to go appreciate that that had come out at the end of 2023 like you said that placeholder date That's a big one That I'll remind everyone at the time when we had the initial PCRs in twenth that first filing at the end of 2023 There was two independent accountings done right there was a financial report done for the for the six or seven subsidiaries That were isolated and then there was a separate financial disclosure for the remaining 60 some odd of the other ones and There's never been a very good explanation for why Except for a few other anomalies, right? They had different placeholder effective or final decree dates and We also looking back in I think it was in October of 2023 saw for the first time that the monthly operating report for two of them for the old buy-by-baby And for the Texas foreign entity Didn't align with the date that every other one did and so I liked that You know it was to the day that all of these things happened on September 21st that they reviewed later on to have happened the name change This accounting having been done and handed over and a lot of these things really weren't making sense at the time But then over the you know obviously over the course of the years as everyone has put in a lot of good effort to try to For the benefit of the group discover and learn we've seen that I believe all of it was was heading to a much a much larger Solution than was initially presented at the time Jake you still there no stop it stop That's okay, no, I heard you heard you just stop talking abruptly, so I wasn't sure if you were finished When it comes to the name DK butterfly. Do you think DK stands for David Castin or do you think perhaps it's more likely to be something else? I think there are two really three real legitimate options one is the trolling one Another one is David Castin and the other one is oh I can't remember his name the gentleman from Lazard at the time. David's life in his curts. Thank you Also David a number four. It's on like donkey dog Yeah, that's also a good one David cuts is probably the most likely match I think it's a coincidence that David Castin has the same initials However, if we look at the project name being butterfly and we're aware that they have that since at least February 2023 David cuts is the deal maker so he would have been involved in whatever the agreement was with whatever was carved out and With the date being obviously a placeholder not I think if they named it something like BBBY liquidation or wind down it would be different And if we just look back at December 2022 There was a post I put up recently. So I think in docket 29 I don't know what page it is it says that Lazard started soliciting interest in a going concern sale as early as December 2022 and that's the time that Shelley Longbad stated that she thought Ryan offered around 400 million for the company in the docket It says that in December 2022 Lazard for errors. I don't know if that's how to pronounce it Jake That's French that's your jurisdiction They pronounce they commence the process to solicit interest in a going concern sale transaction Obviously as I said this was as early as December 2022 and if you look at Ryan being the master strategist the due diligence guy that he is He had those long dated calls for January 2023 So I think he could see the cash burn of the company. He could see the accelerated share repurchases And he could see that the business probably wouldn't survive past December 2022, which is when he could start making his move properly So December 22 they start looking at a going concern sale transaction as well as do solicit interest in providing chapter 11 financing This was on the table as early as you know the fourth quarter and if you cast your minds back They should have had a reasonably good quarter if the suppliers didn't start fucking around and MSC have been sued for that and settled We don't know how much for yet It says Lazard initially reached out to a group of potential financial and strategic investors who are experienced in investing in the retail sector And one of them obviously must have been Ryan Cohen operational turnarounds and or distressed situations and held meetings We have certain of those investors in late December 2022. That's in docket 29 So if we align that with the comments around Ryan making it offer for the company in December 2022 It's obvious that he would have been part of the discussions with David Kurtz And then if we cross reference that with the fact that the IP was sold off very quickly Within the company and in fact if you guys look at the credit agreement between six three and the company of the former bed barfin beyond um The trade names are mentioned quite a bit within that so from day one of six three entering the picture Trade names were something that they were very adamant on that they would have control over which if you're in a First in last out loan. It's kind of irregular So they were planning for the devices company as early as then and perhaps since August they were planning to strip off certain assets And then again if you look at another corresponding connected point Ryan filed his teddy trademarks four days before selling his shares So the fact that trade names probably weren't something that either he wanted or were not necessary to the plan And if Jonathan Johnson and Ryan perhaps had discussed this previously And they said that they were happy to rebrand their company to bedbuff and beyond Jonathan Johnson steps down Pretty easily without a fight after a letter from Jack capital Literally, I think the Monday after we were delisted That's where the trade names where that's where the branding went and Ryan was already ready for that because he had the teddy trademarks in place And to the state he still not used those trademarks anywhere else if he wanted to launch a competing business He could have done so a year ago two years ago three years ago He hasn't why did he not do that because he's not finished with this is my belief So I went off on a bit of a tangent there, but um, yeah, Lazard David Kurtz It seems to align more with the naming of the company structure as it was as it was part of a deal And perhaps David Kurtz had to sign a serious NDA to not leak out that potentially a deal was done between Ryan Cone and the rest of the company or the estate at that time and whatever else was carved out Yeah, I think those are good thoughts. I think You know, we've had a Few varying ideas that I think all of All of them were really well thought out. I think at the time with the information we had Over time, I've tried to boil this down into its simplest form And into its smallest kind of form factor and and it just you know if if anything more comes of it or there's a there's a bigger Solution than that's great, but I've kind of simplified it to There's a leftover corporate shell entity with huge tax advantages And there's someone out there that would benefit from Inserting a business into it that could benefit from those tax advantages and the tax law says that the only way you can Take advantage of those benefits as if you distribute shares otherwise the IRS would You know look at that very negatively and think that you're trying to perform tax evasion and can retroactively take away your benefits So you wouldn't really take the chance So that you know if anything more happens than that and if any other companies involved That's great that be a very pleasant surprise. I think At least in my opinion it makes very clear sense to me that this was all Decided that it was going to have to happen this way in January of 2023 and a few things I want to highlight Are that you know the bond exchange that was proposed in October of 2022 That failed Happened exactly 60 and one days after Ryan sold his shares, right? So if you look up the SEC regulations if you're a 5% shareholder and you sell you cannot Re-approach a company in an activist position for 60 days And the immediate first day after that 60 days the bond exchange shows up right the bond exchange is extended and extended Ultimately fails and collapses no big deal And then you know it comes out through the deposition Um Which I mean I hope it's pretty clear to everyone that there's no that's that's not a correct recounting of the events like that's a