News & Analysis as of

Investment Liquidation

Fox Rothschild LLP

Business Court Gives Maggie Valley’s Ghost Town in the Sky More Time to Scare up Some Investors

Fox Rothschild LLP on

A member seeking to dissolve an LLC which owns a mothballed amusement park in Maggie Valley, North Carolina, didn’t have a “ghost of a chance” to close out a struggling, yet functional, company. In McClure v. Ghost Town in...more

Ward and Smith, P.A.

Tax Treatment of the Sale of Social Club Assets Upon Liquidation

Ward and Smith, P.A. on

Since 1916, Congress has exempted from income taxation clubs formed to facilitate social interaction between its members.  As a result, country clubs, hunting and fishing clubs, college sororities and fraternities, and...more

Wyrick Robbins Yates & Ponton LLP

What is Liquidation Preference?

​In a venture capital deal, a liquidation preference refers to the payout investors receive in a liquidation event (like a sale or merger) prior to any payments made to the common stockholders. Venture capital investors...more

Seward & Kissel LLP

Diamond Shining On, Airlines Crashing, and Conspiracy Theory

Seward & Kissel LLP on

Amazon to invest in Diamond Sports as part of bankruptcy deal | ABC News - Diamond Sports has been in Chapter 11 bankruptcy proceedings since it filed for protection last March with debt of $8.67 billion. Amazon will partner...more

SECIL Law

Buyer Beware: The Tech Startup Employee Stock Scheme

SECIL Law on

Startup company employees, many in the tech world, need to be aware of a model that financiers and insiders of (typically Delaware) business corporations use to misappropriate contributions employees have made, in the form of...more

Farrell Fritz, P.C.

“Beyond Redemption”: SPAC Shareholder Redemptions and New Excise Tax Could Lead to Year-End Rush to Close or Liquidate

Farrell Fritz, P.C. on

Just last week, special purpose acquisition company The Music Acquisition Corporation (“TMAC”) called a special meeting of its stockholders.  It wasn’t the special meeting it originally envisioned.  TMAC was launched in...more

Rivkin Radler LLP

An S Corporation’s Sale of Real Property Following the Death of Its Shareholder

Rivkin Radler LLP on

Don’t Do It- There are certain generally accepted “dos and don’ts” of which almost every investor is certainly aware. For example, do not put all your eggs in one basket; if an investment seems too good to be true, stay...more

Conyers

Norway Practice Bulletin 2021

Conyers on

Welcome to Conyers’ 2021 Norway Practice Bulletin. Our annual publication underscores the importance of the Norwegian market to our Bermuda corporate practice. The 12 months since our last issue have been very different,...more

Patterson Belknap Webb & Tyler LLP

Cryptic Crypto: Creditors Move for Ch. 7 for Alleged Madoff-Like Fraud

On Wednesday, November 18, two customers of Cred Inc., a cryptocurrency investment platform currently in Chapter 11, asked Delaware Bankruptcy Judge John T. Dorsey to convert the Chapter 11 case to a Chapter 7 liquidation...more

Farrell Fritz, P.C.

“Whoever has the Gold, (Once Again) Makes the Rules”: VC Deal Terms Likely to be More Investor Favorable

Farrell Fritz, P.C. on

It’s no shocker that the Coronavirus pandemic has slowed down venture capital investment dramatically, with 2020 now on pace to be well below the high levels of the past couple of years.  According to Pitchbook, VC deal flow...more

Farrell Fritz, P.C.

Irredeemable: Delaware Case Will Make Redemption Rights Tougher to Enforce

Farrell Fritz, P.C. on

Venture capital funds routinely negotiate for a right of redemption – the right to require the company to buy out their shares after a certain period of time if an exit has not occurred – as a key element of their exit...more

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