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It was truly a wild week in the Commodore liquidation proceedings.
Early Thursday, word came to me from a reliable source that Escom (the
German-based PC clone maker who has expressed interest in the Commodore
asstes) and the liquidator had reached an agreement to make their bid the
contract bid. That contract would then be subjected to a public auction
process, at which all interested bidders would have a chance to top each
other's bids, and the highest bid would win the contract for the delivery
of Commodore's assets.
But a few hours later, it was revealed that this ALMOST happened, but was
aborted because of a bizarre set of circumstances. Escom had instead made
a deal, two weeks earlier, with Commodore Germany's liquidator to purchase
the "C=" and "Commodore" trademarks for $1.4 million, and pulled out of
the C= International deal since they had what they truly wanted, the
However, the International liquidator and the US courts did not feel that
Commodore Germany had the right to sell the Commodore trademark.
Furthermore, one of the remaining bidders threatened to pull out of the
International liquidation if the trademark was not part of the package.
The US judge threatened Escom and the C= Germany liquidator with legal
On Friday, Escom and the Commodore International liquidator reached a new
agreement. Essentially, their contract has now been established as the
contract bid. If they do not obtain the Commodore assets in the
liquidation auction, they will hand the Commodore Germany trademark
over to the winners.
This is the breakdown of the details, as described by Dan Stets'
Philadelphia Inquirer article:
"Escom's contract bid is for 6 million dollars, not counting the 1.4
million they have already spent on Commodore Germany's trademark. Escom's
offer includes $3.5 million for Commodore's core assets, an additional $1
million for its German assets, $500,000 for Dutch assets and $1 million
for the manufacturing inventory remaining in the Philippines, where
Commodore used to build its computers."
The consortiums lead by both David Pleasance of C= UK and Alex Amor of
Creative Equipment, International are expected to bid at the auction.
Other potential bidders will be notified when a date is set, which may be
as early as a month away.
[Dan Stets' recent articles from the Philadelphia Inquirer and a Friday,
March 10 conversation with Franklyn R. Wilson, chief liquidator of
Commodore International, generated this report.]