https://investors.xerox.com/node/31106/html
We now have to pay to use our own intellectual property (names and products):
"Under that agreement, Xerox and selected subsidiaries retain worldwide, royalty-bearing rights to use the contributed IP, paying IPCo a 2.0% royalty on specified consolidated revenue"
https://www.stocktitan.net/sec-filings/XRX/8-k-xerox-holdings-corp-reports-material-event-51419028ca39.html
From what I read, Xerox just “pawned” all the trademark property for Xerox but they didn’t touch an Lexmark trademarks. So if they default on the loan the Xerox names go away and Lexmark remains.
Could that be the intentional play?
We just borrowed another 12 months, after which the company will default. There is no way they will hit the covenant clause after which IPCo will manage the bankruptcy.
"I'll sell you the RIGHTS to use my lawnmower for the summer to cut laws and make some money of your own if you'd like, AND if i use my own lawn mower and i make $20 (as long as you still have the rights) i'll give you 40 cents of every lawn i mow".
$450-475M for the right to lease out intellectual property AND 2% of whatever xerox gets when they use THEIR OWN intellectual property UNTIL the 450 is paid back.