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Knight-Ridder report on the C= situation
26 Sep 94.
@END_FILE_ID.DIZ
Here is a message that might be of interest to some members. Please direct any
replies to the author in the message header or to ALL.
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From: MIKE BRANTLEY Date: 09-23-94 11:36
To: ALL Msg#: 51650
Subj.: Knight-Ridder Report 1
Area: F-AMIGA |60
MSGID: 1:3625/470.0 8725298B
PID: WILDMAIL!/WC v4.00 93-0963
Here's the latest Knight-Ridder report on the Commodore situation:
Commodore bidder so confident it's advertising for new engineers, managers
By Dan Stets
Knight-Ridder Newspapers
After weeks of delay, the fight for Commodore International Ltd. finally
may be entering the last round.
One of two contenders is feeling so confident that it is advertising
Thursday morning for engineers, managers and accountants to restart the
computer company's operations in the West Chester, Pa., area.
The two main adversaries -- one American, the other British -- are to meet
separately in New York over the next few days with one of the liquidators
appointed by the Bahamian Supreme Court to dispose of the assets of the
once-mighty, small-computer maker.
The liquidator, Franklyn Wilson, will be reviewing the final buyout
proposals from Creative Equipment International of Miami and a management team
from Commodore's subsidiary in the United Kingdom.
The contest pits Commodore's largest distributor in North America, CEI,
against the managers of one of Commodore's most successful subsidiaries.
Commodore filed for bankruptcy in the Bahamas in early May and the court
there appointed two accountants as liquidators, the Bahamian equivalent of a
bankruptcy trustee under U.S. law.
The company was incorporated in Bahamas but had its North American
headquarters in West Chester.
Wilson, the lead liquidator, had hoped to sell Commodore's assets and
technology by the end of August, but it now looks like a final decision will
not come until next month.
``We think that it could happen within the next three weeks,'' said CEI
president Alex Amor, who today (Thursday) starts advertising for employees in
the West Chester area.
``We'd like to have resumes on hand and we'd like a good pool of talent,''
said Amor. CEI would like to hire back as many of Commodore's former computer
engineers as possible, he noted.
If CEI's proposal is successful, Amor said he will be hiring about 90
people, including about 70 engineers, over the next nine months. He also has
begun looking for a new engineering and research center in West Chester or
Norristown, Pa.
An employment ad appears in Thursday's editions of The Inquirer.
``Commodore Experience Helpful,'' the ad emphasizes.
``That should give you some idea where we think we are with the trustees,''
said Amor. The CEI proposal is ``the best offer on the table,'' he added.
CEI would like to have an engineering and research staff of 90 people, Amor
said. At its peak, Commodore had 78 engineers, he said.
While the employment ads indicate CEI is bristling with confidence, the
United Kingdom team is not fazed.
``I would hope they would pass the resumes on to us when we win the bid,''
said Colin Proudfoot, a managing director of Commodore U.K. and a leader of
the buyout effort.
Both buyout teams say they are committed to developing and expanding the
technology of Commodore's Amiga computer, which among other things can be used
as a low-cost videotape editor.
Both teams said they have scheduled meetings at the Manhattan offices of
Fulbright and Jaworski, the liquidators' counsel, the British on Friday and
the Americans on Monday.
Wilson has been in the Philippines this week trying to resolve what has
become one of the stickiest issues in the liquidation.
Commodore had its manufacturing operations there and still has an inventory
of components there. Both bidders had hoped to acquire the inventory, which
includes computer processors.
For reasons which he has not yet explained publicly, Wilson has been having
trouble including those assets in the final package for purchase. Neither the
U.K. team nor CEI intend to resume manufacturing in the Philippines.
The U.K. team handed its final proposal to the liquidator last week. It was
supposed to be valid for only 10 days, but Proudfoot Wednesday dismissed the
notion of any expiration date.
``The fact of the matter is that we are in correspondence with the
liquidator and it is a fluid situation,'' he said.
``Does it mean we are going to withdraw if the 10 days expires? No, it
doesn't because we want the business,'' he said.
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Regards
Charles
PGP ID: Charles Figueiredo <amiga.chairman@canrem.com>
Public key available upon request
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