QUOTE (Bull @ Apr 21 2010, 12:50 AM)
Ok, so in theory, the Chapter 7 filing may not be that big a deal. More information has been posted elsewhere, and while they're legal documents apparently available publicly if you know where to look, they contain names and addresses and the like, and that makes me really uncomfortable sharing. So I won't. Especially since as far as I know, Wildfire LLC is the only one that's mentioned anything about this publicly (and I'm less uncomforatable talking about a company than I am individuals).
Anyways, long and short of it is that it's WIldfire and two individuals, and the nature of the amounts are a Loan, Services rendered, and Royalties. Wildfire is the Royalties one. The total amount for all three is under $60,000.
60K is a sizable amount, but not insurmountable. So my question is, if anyone knows more about the financial laws, could IMR basically pay them off by meeting their owed amounts at this point, ending the filing, or can the attempt to force the issue through (at which point, if the Wikipedia page on Chapter 7 is to be believed, a mediator steps in, if the claim is judged valid).
I dunno, it really seems that my first assessment was the correct one. Basically, some folks attempting to force CGLs hand and guarantee they see some recompense.
<shrug> M&P? I think at this point we've determined you're the only one on here qualified to comment on these areas
Bull
Also not a lawyer, but while we wait for M&P I have more experience with business to business collections than I care to. In my experience (far out side this industry), usually the contract governs the collections process. I.E. if you fail to pay, we will collect via method X (and usually you have to pay for method X). There are so many alternative methods to collect, all of which would generally have a greater and quicker chance of returning actual money. I.E. mediation, collections agencies, etc. This chapter 7 actions just seems a bit bizarre.
Pure baseless conjecture: it seems like maybe there's some bad blood in play. The timing of this chapter 7 action is suspect. In other words, if CGL owes me money, I want them to stay in business so they can pay me. If Topps performs a standard due diligence on the corporation and principal owners (again no idea how this works in RPG industry, but pretty standard for franchisees), they're going to see any liens or bankruptcy actions. This makes them less likely to retain the license, less likely to stay in business, and less likely to be able to pay me. Now, if I hate someone at CGL's guts and I want to see them fail regardless of what it costs me, they I want to get this on the public record for all to see. Heck, some franchise contracts can be instantly voided in the event of a bankruptcy filing.
As I said, this is pure baseless conjecture, but at first glance this doesn't pass the sniff test.