Bryce Speaks Out
15 messages in this thread
Remember Bryce Nesbitt, Former head of the Operating Systems Group?
Here's his take on the current, uh, "difficulties" …
—————-
I've read a lot of uniformed garbage posted about this Bankruptcy
filing.As someone with a bit of inside knowledge I'd like to shed a some
light:
Bankruptcy is not the end for a company. The remaining employees of
Commodore went to work today (Monday) and were encouraged to "stick things
out." The phone is ringing off the hook with companies wanting to buy the
Amiga, the chips, the software, or other bits and pieces.
It has been painfully obvious that Commodore under the current
incompetent management could not survive. Many people inside and outside
have been encouraging filing bankruptcy for some time now. At one point
the entire executive staff attempted to force a filing, but were rebuffed.
Why? The company needs reorganization. The company needs to loose the
stubborn imbecilic President (Mehdi Ali) who has guided the company from
$1 billion to Bankruptcy in just over three years. The technology did not
die, it was killed by idiot moves like producing thousands on thousands of
the older model computers after new ones were introduced, and reluctance
to sell Amiga technology into new markets.
The company has been strangled by Mehdi's millions in salary (now down
to just 3/4 million a year), extravagant expense accounts (Over $60,000 a
month the rumor mill says), and perks ($130,000 Mercedes, unlimited use of
corporate jet, etc.). The corporate finances are so far gone, the company
must cycle through bankruptcy to eliminate the boat-anchor of debt and
liability.
The Amiga technology is very valuable — there are many potential
suitors, a number of which have been attempting purchase. Several of
these suitors have the necessary funds and a good focused idea of what
they want to build. Some of the new products would be familiar to Amiga
owners, others want to imbed Amiga technology into new devices. If the
bankruptcy court plays its cards correctly, the Amiga could blossom into a
dozen new flowers.
If the bankruptcy court leaves the same people in charge, *then* it
willbe a sad day for the Amiga.
Bryce Nesbitt
Former head of the Operating Systems Group,
Commodore-Amiga
|\_/| . (ACK!, NAK!, EOT!, SOH!) "Lawyers: America's untapped export
market"{X_x} .
(") To order the new DICE 3.0, or the T-Shirt from the Commodore
Deathbed U Vigil (April 30, 1994), call 1-800-761-2042 or email
"info@oic.COM".
[Please feel free to repost this message]
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-sja
Steve,
I guess I could see some (maybe a lot of) merit in Bryce's angle if C=
were merely filing for bankruptcy. But liquidation is (I gather…I really
know nothing about this stuff) a whole 'nother ballgame. Sounds to me like
dissolution rather than reorganization.
I certainly agree with Bryce about the "stubborn imbecilic President
(Mehdi Ali)" part, though. 🙂
-Dave (via AutoPilot)
David,
Regardless of what happens, NO ONE was going to purchase Commodore. They would
have to assume >$300M of debt. Would YOU pay for the previledge of assuming
that type of debt?
Now, if that debt has been legally washed clean, LOTS of folks are all of a
sudden REAL interested. That's what you get thru a liquidation procedure. The
assets are sold, the proceeds go to the creditors (remember, Gould himself is a
major creditor). If it is only 10c on the dollar, that's too bad for the
creditors — the debt slate is wiped clean.
Now, my _personal_ opinion, based on NOTHING but the residue of the stuff I did
inhale back in the 60's … The liquidation of CEL is _voluntary_. The assets
of CIL were turned over to (as of yet) unnamed "trustees". The resolution of
the issue will take place in a Bahamian court (their Supreme Court) … this
will not be the type of resolution you'd expect under US law. My feeling is
that whatever is going to happen was resolved days/weeks ago. If there is to be
a buyer the deals have been cut. The purchase will come free from debt and
things will continue. I've got a strong suspicion that Irving Gould will come
out of this very nicely … with cash and/or control of the new entity. Again,
that opinion is based upon nothing but untimely flashbacks.
One real story I'd love to hear is the "why" Gould has turned over such
lucrative positions to his friends in the past. They've made out like bandits.
How do I get to be a friend of Irving's?
Well you'd better change your name, cause there are some pretty caustic
posts that would surely turn up…
I was to young to inhale much of anything during the 60's. However, your
"logic" sounds very reasonable to me. I fear ol' Irv may not be out of the
picture.
For anyone who cares, I think you and Bryce are right on the money. No
pun intended.
Dale L. Larson R360: You hit 23 Enemy Virtua Formula: 1/8
Intangible Assets Manufacturing AS-1: Most qualified
I completely agree with your assessment.
I think this has been in the works for a long time. Remember that
stockholder ballot? There was a line that asked the shareholders
relinquish the right to approve/disapprove the sale of the company (among
other things). I now believe this was done in order to make it easier for
the Board to transfer the company to a new company. Since they couldn't
get anyone to take on the debt, the only way out was to liquidate to clear
off the debt. I just hope that Ali is in no way involved in the new
company.
What this means for the future of the Amiga Computer remains to be seen.
The chip technology will survive, but I'm unsure if the system as a whole
will continue beyond where it is right now.
Assuming you're correct, any wild guesses (or flashbacks <grin>) about who
picks it up?
Steve,
Nope, all flashback'd out <grin>
I know from my conversations with some of the Amiga conoscienti here in
the UK that this situation has been expected for several months.
Although I don't know any of the details I do know that Dave Pleasance (MD
of C= UK) has just flown out to NY to try to put together a deal to buy
out the European operation. As I say I have no idea how this would work,
where they would make or assemble the Amigas.
For my part I have grave doubts about Dave Pleasance having any sort of
control over the future of the Amiga.
Greg
Greg,
While I can confirm that Pleasance is currently in the US, I doubt it is
with the intent of purchasing the European operation. Listen carefully to
what C= Germany has been saying and the press release they issued today.
Then ask if anyone in West Chester happened to drive by Commodore today
and notice any unusual activity.
-sja
" in the works for a long time. Remember that
stockholder ballot? There was a line that asked the shareholders
relinquish the right to approve/disapprove the sale of the company (among
other things). I now believe this was done in order to make it easier for
the Board to transfer the company to a new company."
You're to be commended on your acute powers of observation. <G>
Jerry
Steve,
Your scenario sounds more plausible than most of the others I've seen. But
even if some company or other does end up possessing the late C='s assets,
with or without Uncle Irv in charge, I can't see that it makes any
difference to me as an Amiga owner. Even if the patient is put on life
support, its brain has already flatlined.
-Dave (via AutoPilot)
>>I can't see that it makes any difference to me as an Amiga owner.
Even if the patient is put on life support, its brain has already
flatlined.<<
David,
I'm not so sure…
It was C= management that was braindead, not the Amiga. A new company
could indeed bring the Amiga out of its coma… if they wanted to.
I don't think Commodore's management was braindead. I don't know if any of
them are going into liquidation!