#Stets 10 Feb
The major points of Mr. Stets' article in the 10 Feb. Inquirer are as follows:
"At Commodore, Taking Care of No. 1" Philadelphia Inquirer, Friday, Feb 10,
1995 by Dan Stets, Inquirer Staff Writer
a. "Less than a week before beginning the liquidation of Commodore
Computer last May, the company's directors paid $2.6 million to
extend their liability insurance for three years…".
b. This policy "shields their personal assets from negative legal
judgments".
c. "Chief beneficiaries […] are Irving Gould and Mehdi R. Ali".
d. The $2.6 million premium "came out of company assets, so it is
money denied Commodore creditors and stockholders".
e. Two new potential suitors for Commodore emerged. "One of the
potential bidders is Escom AG, the largest distributor and
marketer of computers in Germany. […] Another individual, Louis
Ulysses of Seattle, also appeared, saying he represented a major
American technology company, the name of which he declined to
disclose."
f. Last September, Escom was willing to pay $12 million for Commodore.
"Escom is still interested, but would probably no longer be willing
to pay that amount, because the sale has been delayed so long".
g. Neither CEI nor the Commodore UK management buyout team have
made their bids public. "[S]ources have said their initial
proposals were higher than Escom's."
h. Both Gould and Ali intend "to oppose the agreement, which would
allow the sale of Commodore's assets to proceed."
i. "The hearing was delayed: The judge scheduled to take the case
went on emergency leave because of a death in the family. Lawyers
expect the hearing to be rescheduled within two weeks".
-sja