Typical for large chapter 11 cases, Weinstein Co. docket already contains zillion pages. Only partway through, but quick comments so far:
1: job saving rationale of ch 11 hard to apply to this case. 85 FT employees, & employees not likely sticking point to non-bankruptcy sale, & severance packages would be less expensive than even truncated ch 11.
2: purpose more likely to be to cleanse company of liability stemming from fact that "more than 80 women have stepped forward to accuse HW- a man whose name is eponymous with TWC - of sexual harassment, assault, or rape." (Doc 7 p 15).
3: Congress created procedure for discharging corp. liabilities & overriding state successor liability law: a ch 11 PLAN, after disclosures, voting & scrutiny of list of statutory reqs. But powerful parties often prefer "make their own adventure" & make it seem like only option.
4: CFO repeatedly describes capital/financing structure as "complex" & yet company wants quick sale under 363 of BC, w/ fed ct order cleansing company of successor liability for harms. If so complex, should give court time to study AND give claimants full due process.
5: Sale motion seeks to sell "avoidance actions" to buyer. If permitted, major line of scrutiny of company's lenders' entitlements would be buried, to potential detriment of assault/harassment/rape claimants.
6: This company was melting ice cube in Nov 2017. Now, already melted.
If there is to be quick sale nonetheless, at very least need Ice Cube Bond to protect claimants against risks of undervaluation & misdistribution. bit.ly/2HSuwq7
If there is to be quick sale nonetheless, at very least need Ice Cube Bond to protect claimants against risks of undervaluation & misdistribution. bit.ly/2HSuwq7
7: Although there's 3d Circuit decision upholding 363 sale order giving assets to buyer free & clear of sex discrimination claims, decision is fairly limited & does not dictate that outcome here.
