Got word from an ex-employee who has a law suit pending and states others are suing as well from across the country. Not sure how true it is but I was told that these law suits if not resolved can hold up the sale because the suits if settled or won has to be paid out by CCI or the new purchasers. Anyone else know much more about this. Please no personal attacks, I am just inquiring on how valid the statements told to me as being true.
4 replies (most recent on top)
No blood in a turnip
523 you are correct. The original agreement the CCi has with the DOE prevents most of their revenues from being used as a set aside for pending lawsuits. The revenues from the sale are so low that ECMC would be a fool to let CCi do it. In addition, DOE has already let CCi put lower amounts in the set asides that were included in the original agreement. 522 there is a possibility that the ex-employee's suits could be discharged in a Chapter 11, but depending on the ex-employee's attorneys they could fight it.
In some instances the seller agrees to indemnify the buyer and sets aside dollars (usually from proceeds of the sale) to pay any damages awarded if the suit is successful. This allows the sale to move ahead. In this case, however, there seems to be many suits and no much revenue from the sale, so I don't know how that would work. Any M and A experts out there?
wouldn't these be discharged in bankruptcy