Joined: 2-May-2003 Posts: 2097
From: Rocket City, USA
@dirigent
Quote:
dirigent wrote: @Tigger
Quote:
US law defines insolvency as the state of owing more money then you have assets to cover them.
That's if you talk about balance-sheet insolvency, not cash-flow insolvency (to me the latter seems to be the more natural meaning of the word insolvency anyway). I'm sure you're aware of that, but as the judge said it wasn't clearly defined I thought I'd point it out again.
The issue is that cash-flow insolvency isnt defined in US Law, my quote is from the US code, the same US code that defines bankruptcy (which is also part of this section of the contract we are looking at). In reality, I think it likely insovency was included in the contract because of Eyetech (a UK firm, and Insolvency == bankrupt company in the UK), only a person, and not a company can be bankrupt in the UK. When it gets down to it, Hyperion cant prove they were insolvent under Title 11 (because they werent) and they approved of the transfers because they signed first a contract with Itec and then one with KMOS, and were all excited about KMOS taking over, we have quotes from Ben and Evert on the matter. Its hard now to say, we didnt approve it. Did Eyetech approve of the transfers, not sure, but unless Eyetech shows up to sue both companies, thats going to be a non-issue. -Tig
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