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LATEST LIQUIDATION LOWDOWN
By: Jason Compton
The sale of assets, legal code, and asset lists are now available to
interested buyers and parties in the Commodore liquidation.
There is some great stuff in there. But first, here are the essential,
The opening bid for Commodore's assets (in fact, the one that has been
signed to by all necessary parties) is $5 million dollars, submitted by
Escom and accepted by Commodore. For a bid to be submitted to challenge
Escom, it must be for at least $7.3 million: $1 million more than Escom's
bid, plus $1.3 million to buy the German Commodore trademarks from Escom.
After that initial $7.3 million bid, bids must be in minimum increments of
After the highest bid has been determined in this fashion (i.e. from all
parties interested in buying ALL of Commodore's assets) the assets will be
offered piecemeal. The combined piecemeal bids must be larger than the
largest "total-package" bid. Then, the largest "total-package" bidder and
the combined piecemeal bidders bid off against each other until the
liquidatior chooses a bid that is "highest or best".
The deal must be approved at the US Bankruptcy court on a date immediately
following the auction (in this case, April 21st, 1995). The legal code
agreed to by all parties calls on the Bahamas Supreme Court to rubber-stamp
the decision Judge Garrity of the US Bankrupcy Court makes.
The deal must be closed (i.e. paid in full) within 11-20 days of the
acceptance of the bid.
Assets are purchased "as-is, where-is"...meaning if you live in the
Philippines, you'll be able to get work for a few weeks or months moving
inventory out of that warehouse.
Any objections to this bid process or legal code must be made by 5:00 PM
EST, April 13th, 1995.
With luck, the Buyout Issue will come before the April 29, 1995 one-year
anniversary of the liquidation. We can only hope.
And now, on the lighter side of the news...
Liquidation Fun Facts (tm)
Did You Know...
The creditor that launched this debacle is Banque Nationale de Paris, which
on April 25, 1994 "made a formal demand upon CIL (Commodore International,
Ltd.) for payment of its debt."
Commodore owns many trademarks, patents, and licenses. Almost all of these
are for sale, but not all. On the 2 page listing of those NOT for sale,
you will find such delights as-
- Commodore UK's trademark on "Maggot Mania"
- Commodore France's patent on a "device for controlling the opening and
closing of fluidtight doors"
- Commodore's one-time patents on their digital thermometer and
Commodore's intellectual property and CDTV/CD32 software licenses are
valued at $12,000.
According to CD32 software license records, at least two licenses were
granted to developers AFTER Commodore entered liquidation.
Hughes Aircraft (A CDTV software licensee) has a standing legal suit
against CIL and Commodore US.
Commodore has the name "CDTV" trademarked 5 times in Japan.
The only listed inventory of completed machines is roughly 3,300 CD32s
(1400 PAL, 1900 NTSC), valued at $22.50 each.
Commodore's Philippines assets are book-valued at $14.5 million. CEI
estimates claim that $2 million of that is Akiko chips at a cost of $15
each, or over 130,000 units.
Commodore's Norristown assets are book-valued at $4.7 million worth of CSG
chips, which would include virtually all chips necessary to the
construction of AGA Amigas. Furthermore, CEI claims that roughly 200,000
Lisas have been constructed and are being held (unpaid) by Hewlett Packard,
A warehouse in the UK is holding over $1.2 million in Commodore assets (for
sale) consisting of "CEL Spare parts", CEL being Commodore Electronics,
Ltd. What those spare parts are remains to be seen.
CSG (Commodore Semiconductor Group) has been taken over by GMT
Microelectronics Corporation (GMT was formed by CSG management), for a sum
of $4.3 million dollars to the liquidators of CSG plus a $1 million dollar
payment to the EPA on a standing lien for pollution.
Commodore-Amiga, Inc., Commodore Business Machines US, and Commodore
International Services Corporation are all still operational in some way,
as they have to sign the Commodore sale contracts. All three are run by
Thomas Matsen, who once hung up on me when I called him for liquidation
Some of the surprising places Commodore has registered its patents:
- Israel (Actually registered by Amiga Corp., the pre-Commodore entity)
- PCT (would someone like to explain where and what "PCT" is? My only
guess is that it's Pacific Coast Trading, Irving Gould's company.)
Psygnosis has made claims to compensation from Commodore for assistance in
the design of the CD32.
All in all, keep hoping we clear the 13th without an objection. It should
be a very interesting auction.