Which news release do you want us to read?
Is it this one?
> ENCC news release dated 11/18/97:
> ...
> Encore has agreed to sell to SUN substantially all of the assets
> associated with Encore's storage products business (the "Storage
> Products Business") for a purchase price of $185 million in cash,
> of which $150 million is payable at closing and $35 million is
> payable on July 1, 1998 (the "SUN Transaction").
Then you know very well that the rights to $35 million have long been transferred to Gould. In fact, from Encore's 10K filing (04/23/98):
> If the amount paid to Gould by Sun on July 1, 1998 is less than $35
> million due to the inaccuracy of any representation or warranty of
> Encore in the Agreement, the failure by Encore to fulfill any
> obligation under the Agreement, or any other act or omission of
> Encore, under the Gould Agreement, Encore will be indebted to
> Gould for the amount by which such payment is less than $35
> million. In addition, if the $35 million is not paid to Gould by
> July 31, 1998, Gould will be entitled to receive from Encore shares
> of Series B, D, E, F, G, H, and I Preferred Stock which represent
> accrued but unpaid dividends on Gould's Preferred Stock as of
> November 24, 1997.
Or is it this one?
> ENCC news release dated 03/20/98:
> ...
> As previously announced, Encore sold its Storage Products business
> to Sun Microsystems in November 1997 and elected to cease
> development of its NT cluster product line in January 1998, leaving
> the Real-Time business as its only line of business. If the sale of
> the Real-Time business is consummated, it is anticipated that
> Encore will be liquidated. Gould Electronics Inc. owns 48.44% of
> Encore's outstanding common stock and has waived its right to
> receive any portion of the first $30 million of liquidating
> distributions to the Encore stockholders in any liquidation of
> Encore which occurs prior to November 1999.
It only means that *if* Encore is able to salvage anything from liquidating its assets, then it gets to keep the first $30 million. If. I doubt it will come even close.
So don't raise false hopes. And please don't invent new business for Encore because there isn't any, as far as I can tell. I hope we do end up getting something but I'm not holding my breath either.
Chet |
