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From: eve@ssc-bee.UUCP (Michael Eve)
Newsgroups: net.micro.amiga
Subject: Re: Chapter 11?
Message-ID: <458@ssc-bee.UUCP>
Date: Mon, 13-Jan-86 21:36:45 EST
Article-I.D.: ssc-bee.458
Posted: Mon Jan 13 21:36:45 1986
Date-Received: Fri, 17-Jan-86 06:48:44 EST
References: <253@houligan.UUCP>
Organization: Boeing Aerospace Co., Seattle, WA
Lines: 32

>       I have heard rumours that Commodore will file for Ch. 11 bankruptcy
>    within the next few months.  (Chapter 11 is filing for a freeze of assets
>    and internal reorganization).  I would appreciate any information which
>    any of you might come across. 

What I have heard (and I'm sure someone will correct me if I'm wrong(:

Commodore failed to make a payment to its creditors in September or October,
1985.  At that time, the loan was considered in default, and the bankers
stepped in to help manage (and are continuing to do so) the company.  At
ANY TIME, the bankers can now call in the balance of the debt and force
Commodore into bankruptcy proceedings (since Commodore missed one payment,
the whole balance is callable).

Now the bankers don't want to kill a company that has a reasonable chance of
making restitution so they are waiting to assess the current strength of
Commodore's offerings in the market.  The results of the Christmas selling
season will probably way heavily upon any decision they make so we may
hear soon.

Also, according to The DTACK junkmail flyer, Commodore may be hit for millions
of back taxes from various governments.  The bankers will have to cough up
cash to pay these taxes if Commodore is to keep running.  Obviously, they
don't want to throw good money after bad, so if Commodore isn't making
a profit, bye bye.

Many rumors have circulated that Commodore is trying to sell the Amiga division.This may keep the Amiga going even if Commodore later goes under.


-- 
	Mike Eve     Boeing Aerospace, Seattle
	...uw-beaver!ssc-vax!ssc-bee!eve