#CEI plans …
ESCOM BUYS COMMODORE
On April 20th, 1995 Escom's bid of $6.4 million became the bid of record for
the Auction of Commodore's remaining assets. It received a counter bid from
Dell Computers, the silent partner supporting CEI of Florida, of $7.3 million.
In addition, three objections to the auction where heard. One from IBM claimed
rights to Commodore patents under an agreement made many years ago wherein IBM
and Commodore exchanged patent rights.
On April 21, 1995, Dell computer increased its offer to $15 million, with the
contracted plans to have CEI begin managment of the Amiga Computer
manufacturing company, resulting from the purchase of the remaining Commodore
assets. Prior to lunch, the presiding judge indicated to Escom, that they could
have the winning bid if they increased their current offer of $6.4 million to a
total of $13.4 million. After lunch, Escom made the bid of $13.4 million and
was awarded the contract for the purchase of Commodore's assets.
It is believed that Escom has already made arrangements for a company based in
Beijing to purchase the manufacturing portion of the contract and leave Escom
with the German trademark and Commodore name for German marketing, the original
asset that Escom wanted.
Although the bid was supposed to go to the highest bidder, there was some
discussion as to the whether all of the patents, as listed as Commodore's
assets, where free and clear. With the possibility that any manufacturing
effort would result in continued royalty payments for those unclear patent
rights, CEI and Dell had argued for clear title to all Commodore assets.
Whether there is a possiblity of appeal, from the short changed creditors, or
whether Escom will be seeking a stateside manufacturer or distributor for the
possible Amigas, and what the Beijing company is planning to do with the Amiga,
should its rumored contract with Escom be real, is not known at this time.
This is the situation with Commodore as I know it, Friday, April 21st, 1995 at
11:41PM EST.
Hank Teller
Videology, Inc Where service is our business with
P.O.M.P. under all circumstances