Quote Originally Posted by flyu2there View Post
I think that you may find that by the time a company reaches chapter 7, all items sold are handled by the court or its designee..........the trustee.

I noticed that Bob Lee aka Lee Joint Ventures, has terminated the lease on the land and buildings effective on Monday; my best guess is that this is a long running battle between Lee and the Howard boys. I wouldn't be surprised if Lee prevails at the end of the day picks up the pieces and starts afresh.
That would make Bob Lee the "white knight", a position I have been in.

This whole thing has gone beyond the creditor's committee and appears the court is now the last thing between Chapter 11 and 7. If I were to bet, it is over. Maybe not today, but once the first domino falls, that is the first piece of the corporation is sold off to satisfy creditors who now just want to get a few cents on the dollar it will never be re-assembled.

The only way I can see somebody stepping in to keep it going as an entity is if the creditors and the courts allow it. I can tell you that months will go by before anyone could put it together that way because as the "white knight" nobody will assume the risk from contingent liabilities, or from disgruntled creditors, and no lending institution will be providing working capital or other loans necessary without being in first position, something current secured creditors will never give up. There is far too much negotiations required before anyone can emerge to keep it going. Once production ceases, skilled workers are scattered, vendors go away, and customers disappear thoughts of saving the entity become nothing more than wishfull thinking.

If Miles or any entity can get the intellectual materials it appears to be the only hope to be able to maintain the more complex proprietary design features. The good news is that a liquidation takes a little time to set up so if anyone is interested in aquiring that stuff there is a little time.