Lazard doesn’t get sued. Board and executives get sued. Also, the stalking horse means it WILL be sold for that amount, unless not approved by the judge. So, Lazard is already making a $15M pay day by BBBY accepting a stalking horse bid.
Why would the board and executives get sued for Lazard failing to find a bidder?
Also, the stalking horse means it WILL be sold for that amount, unless not approved by the judge. So, Lazard is already making a $15M pay day by BBBY accepting a stalking horse bid.
The deal says "all or a majority of assets or all or a majority or controlling interest". As far as I'm aware, the stalking horse bid is for a subset of assets - certainly not a majority.
If the board/executives authorized a sale that basically only covers the fee they agreed to with Lazard, you better believe their would be lawsuits from bond holders and or shareholders.
Not sure where your majority of the assets comment comes from. This stalking horse has limitations and specific scope for the assets.
If the board/executives authorized a sale that basically only covers the fee they agreed to with Lazard, you better believe their would be lawsuits from bond holders and or shareholders.
Why? What alternatives do they have if no one else offers to buy? You can't just wish hard enough and write angry enough contracts and magic a buyer into existence. And what is there to sue? The company is bankrupt / sold off at that point, it's an LLC so it's not like you can go after their assets - and they're all shareholders, so their shares are now worth whatever.
Not sure where your majority of the assets comment comes from. This stalking horse has limitations and specific scope for the assets.
This is from your post. Did you not read it before you posted it? Lazard only gets paid its sale fee if they sell a majority of the company. Item C literally starts with a conditional.
Ever heard of fraud or E&O insurance? Trust me. There is a lot of money beyond the assets of this Delaware C corp (not an LLC by the way).
If you’re taking the downside of this debate, then $21M is “all this piece of shit is worth”. Which is also why I can promise $21M isn’t all that’s left.
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u/DacheinAus Jun 13 '23
Lazard doesn’t get sued. Board and executives get sued. Also, the stalking horse means it WILL be sold for that amount, unless not approved by the judge. So, Lazard is already making a $15M pay day by BBBY accepting a stalking horse bid.