T/FIF, a New Plateau Message Board

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Biotech / Medical : T/FIF, a New Plateau

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To: John Metcalf who wrote (739)	11/11/2001 11:10:34 PM
From: RCMac	of 2243

What I had in mind is that GLIA might sell products for shares of the other company. The shares would be distributed to stockholders. John, Same problem: Whatever GLIA might receive for the sale of its potential products -- cash, contract rights to royalties, stock of the purchasing company -- would be subject to the claims of GLIA's creditors, including the claimants in the lawsuits. Such cash or stock couldn't be distributed as a dividend to shareholders, depriving GLIA of the assets needed to pay its creditors. This result is required under two related sets of legal rules, both of which are intended to protect creditors. Under general corporate law, shareholders get paid only after creditors; and under creditor protection rules of law (including the "fraudulent conveyance" laws), you can't impoverish yourself by giving your assets to those you favor, in order to stiff your creditors. --RCM

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