Publisher Closure Puts 2600 in Limbo • Hacker News Board

Re: Publisher Closure Puts 2600 in Limbo

#21

Post by tombrossman » Sun, Jun 29, 2014, 7:34 PM UTC

AJ007 wrote: post #6

nav1 wrote: post #3

Previous discussion: https://news.ycombinator.com/item?id=7958815 (it's still on the front page)

I'll keep voting any story about 2600 up. Unfortunately it looks like the magazine & distribution companies legally were completely separate and they just kept similar names for branding. Other companies in their bankruptcy filing are owed millions to tens of millions.

Worth noting that those other companies owed far more also have significantly more resources and assets then 2600. Adjusted for size, it is a terrible blow for them.

Re: Publisher Closure Puts 2600 in Limbo

#22

Post by tombrossman » Sun, Jun 29, 2014, 7:44 PM UTC

mathetic wrote: post #8

This is effectively a hit order that doesn't make 2600 liable in any way. I should be outraged by this cunning strategy but I guess corporations exploiting legal loop holes to do dirty business irritates me more.

A 'hit order'? Not sure what that means, especially from the completely reasonable tone of the article.

As you say it's the business getting dirty here, not hackers.

Re: Publisher Closure Puts 2600 in Limbo

#23

Post by hga » Sun, Jun 29, 2014, 8:07 PM UTC

tombrossman wrote: post #21

AJ007 wrote: post #6

Earlier quoted context omitted.

I'll keep voting any story about 2600 up. Unfortunately it looks like the magazine & distribution companies legally were completely separate and they just kept similar names for branding. Other companies in their bankruptcy filing are owed millions to tens of millions.

Worth noting that those other companies owed far more also have significantly more resources and assets then 2600. Adjusted for size, it is a terrible blow for them.

Indeed.

On the other hand, if 2600, not to mention the other small fry publishers, can survive the blow, they can essentially free ride on the legal efforts of the big fish in their creditor class. There's enough money at stake that Time Warner et. al. will expend plenty of effort, if they perceive there will be a sufficient payoff ("can't get blood out of a stone", sometimes the best you can do is force a Chapter 7 liquidation and get a few pennies on the dollar for your efforts).

Re: Publisher Closure Puts 2600 in Limbo

#24

Post by stox » Sun, Jun 29, 2014, 8:10 PM UTC

JoeAltmaier wrote: post #10

If a judge permitted bankruptcy, I don't imagine there's much hope of recovering anything. Shaming isn't a legal maneuver, and accountants have a thick skin.

It depends, if the companies were split with the knowledge that one would go into bankruptcy, the judge could find there was a fraudulent conveyance of assets. This would invalidate the split, and allow access to the assets of the surviving entity by the creditors.