dherm360
Verified Trader
TOP STORY
BYPASSING BANKRUPTCY COURT WILL SPEED UP FLEER LIQUIDATION
Fleer Trading Cards has started the process of liquidating its assets using a provision in the law known as Assignments for the Benefit of Creditors, a streamlined equivalent of Chapter 7 bankruptcy. An ABC proceeding is designed to help creditors get a higher percentage of their debts, and in a more timely manner, than a typical bankruptcy procedure.
However, it will likely take a goodwill gesture on the part of another card company or other industry entity for collectors holding unfulfilled redemption cards from Fleer to receive anything in return.
Fleer’s creditors - including individual collectors waiting for a redemption card - will be contacted by Warren Martin Jr., a New Jersey attorney who has been appointed assignee of the case. He will send them a Proof of Claim form sometime in the next 7-10 days that they must return. Once assets are liquidated, he will make offers to creditors that they have the option of accepting. He is required under state law to get the highest price possible for any saleable assets.
Martin will soon file motions with the court to sell Fleer’s primary assets - the tradenames associated with the card operation, the die-cast business in its entirety, and what Fleer described as "numerous" game-used and autographed items. All of these proposed sales will be subject to the highest offer. Martin said the game-used and autographed items are products Fleer had in stock for future card releases and not redemption items the company had yet to fulfill.
As for redemption issue, Martin said he’s aware of the significant number of collectors affected but isn’t sure as of yet what can be provided to them. He’s waiting for a final tally as to the number of collectors who are owed items. "What I’m hoping is that one of the buyers of the tradename will agree to take on that obligation," Martin said. "Let’s say a company bids X amount for the tradename and another bids the same amount but is also willing to take responsibility for the redemptions," Martin said. "That resolves claims and is a better deal than flat money, so that would be the offer I’d recommend the court accepts."
For now, his advice to collectors is to fill out their Proof of Claim forms and wait for further instructions. Information is supposed to be posted on Fleer’s Web site www.Fleer.com in the coming weeks.
BYPASSING BANKRUPTCY COURT WILL SPEED UP FLEER LIQUIDATION
Fleer Trading Cards has started the process of liquidating its assets using a provision in the law known as Assignments for the Benefit of Creditors, a streamlined equivalent of Chapter 7 bankruptcy. An ABC proceeding is designed to help creditors get a higher percentage of their debts, and in a more timely manner, than a typical bankruptcy procedure.
However, it will likely take a goodwill gesture on the part of another card company or other industry entity for collectors holding unfulfilled redemption cards from Fleer to receive anything in return.
Fleer’s creditors - including individual collectors waiting for a redemption card - will be contacted by Warren Martin Jr., a New Jersey attorney who has been appointed assignee of the case. He will send them a Proof of Claim form sometime in the next 7-10 days that they must return. Once assets are liquidated, he will make offers to creditors that they have the option of accepting. He is required under state law to get the highest price possible for any saleable assets.
Martin will soon file motions with the court to sell Fleer’s primary assets - the tradenames associated with the card operation, the die-cast business in its entirety, and what Fleer described as "numerous" game-used and autographed items. All of these proposed sales will be subject to the highest offer. Martin said the game-used and autographed items are products Fleer had in stock for future card releases and not redemption items the company had yet to fulfill.
As for redemption issue, Martin said he’s aware of the significant number of collectors affected but isn’t sure as of yet what can be provided to them. He’s waiting for a final tally as to the number of collectors who are owed items. "What I’m hoping is that one of the buyers of the tradename will agree to take on that obligation," Martin said. "Let’s say a company bids X amount for the tradename and another bids the same amount but is also willing to take responsibility for the redemptions," Martin said. "That resolves claims and is a better deal than flat money, so that would be the offer I’d recommend the court accepts."
For now, his advice to collectors is to fill out their Proof of Claim forms and wait for further instructions. Information is supposed to be posted on Fleer’s Web site www.Fleer.com in the coming weeks.
