#Commodore Bankrupt !?
17-Nov-93 03:08:49
Sb: #121936-#Commodore Bankrupt !?
Fm: Wayne Cole 76370,621
To: John Chang 73023,2000
John,
It has already affected CBM shipments. Basically as faras I can determine
from mu search for a sourceof 1942 monitors, unless the item was in the
distribution channel as of sept 1, you won't see it. So, the no parts
portion of the message seems to be true. Now, how you make money if you
can't make product to sell is beyond me.
The CBM scenario is playing out just like Piper Aircraft. Large
backorder, skyrocketting expenses (mostly due to product liabilty suits
handed to pilots who killed or maimed themselves doing something stupid or
illegal, but slick amoral lawyers found ways to tap the company as a "deep
pocket money well"). Piper defaulted on loans creditors stopped credit,
parts suppliers stopped shipping parts on credit, after massive company
parts inventory reduction sale, no more parts, lines stopped production,
huge layoffsensued, facility shut downs and consolidations took place then
the company entered chapter 11. That scenario played out over a 1 year
period. It wasn't gradual. 3 years later they are still in CHap 11 with
the creditors clammering for the judge to hand the company over to them
for liquidation so that they can divvy up the proceeds to get a few
pennies back on the dollars they advanced to Piper (actually to accident
victim's survivors…). Every interested buyer has been chased off by the
requirement to assume liability for all the Pipers still flying –
including the ones built before WW II!!!!.
The bight spot for CBM is that there is no product liability to chase away
potential buyers. Is it possible that the reason the stock didn't go
through the floor is becuase there is a takeover already in progress?
wmc – via Autopilot!