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October 27, 2011
Kodak - you have been warned
Apparently a group of creditors sent a letter to the Eastman Kodak board to remind them that they are required to get "fair value" for any assets they might sell, including the Kodak patent portfolio. In a sale of substantially all the assets of a firm its necessary for a board to ensure that it receives "reasonably equivalent value" for the assets sold. This is, in part, to prevent sellers from using the asset sale as a fraudulent conveyance. The fear from creditors of Kodak is that Kodak might sell its patent portfolio and then file for bankruptcy protection, leaving creditors to take a hit. The creditors are looking to put maximum pressure on Kodak's board before a sale to try to incentivize the Kodak board to get the highest price possible for those assets.
-bjmq
October 27, 2011 in Asset Transactions | Permalink
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Comments
Spanish bankrupcy Law rules 2-year period of monitor-back the protected company.So the jugde may review any sale/transaction within previous 2 years to the CH11 file, and even turn them down. This retroaction only requires damage, no matter intention of the parties. this rule soars insecurity but keep CEO´s hand off the cake.
Posted by: Miguel | Oct 29, 2011 3:40:08 AM
