QUOTE (Ancient History @ Apr 4 2010, 03:47 PM)
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And where at least some of the other owners (like Randall Bills) are hoping to sweep the mess under the rug and pray the IRS doesn't notice it.
Time to jump into the deep end of speculation. Some of my friends and family and I were together for Easter. Some of us have experience in publishing, intellectual property (both entertainment and scientific), and all of us have experience in business.
Our collective (summary) Wild Ass Guess of what has/is happening follows:
1) Financial problems were found.
2) Problems had tax implications.
3) Taxes were paid.
4) Cash reserves were significantly reduced.
This brings us to the recent disclosures and problems with paying people. CGL needs money for the license renewal and fixed bills, so the easy place (in their mind) to cut was the freelancers and salaries.
Our speculation is that there was a conversation with TOPPS. TOPPS most likely watches this board (I used to work for a company that helped people do just that - watch sites related to their interests). They most likely know what is happening, and probably had a short conversation along the lines of "fix it or kiss the license goodbye".
So, the owners do the following:
1) Keep everyone in the fold, so as to continue to get restitution from them and show that they are a going concern. The terms of the LLC could also make it difficult to remove one of the owners.
2) Implement controls and procedures that satisfy TOPPS that they have their operations under control. The troublesome owners are neutralized, everyone is watched and accountable, and a plan is put into place to right the ship.
This would be the preferable approach, as it saves the startup headache with a new licensee. This would also explain much of what we have seen, including the marathon check writing session and the lack of terminations/resignations from the owners.
Going forward, TOPPS would keep a close watch to ensure the new procedures protect the line, and that everyone is paid. They may even allow some of the license payment to be delayed if it helps right the ship. If this course is what is happening, a few things will happen over the next few weeks:
1) Books will be published
2) Bills will be paid, including freelancers
3) CGL will retain the license
4) The owners will have less direct control as individuals, it will be exercised as a group
If this happens, CGL should be able to right the ship, people will get paid, products come out.
Again, this is an educated guess, but it fits with what we have heard from JHardy and the facts presented by other insiders without assuming the complete fall of CGL.
-MP