It’s not future payments promised. Just a division of who to split the proceeds with. And so for the typical creditor who didn’t credit bid, The Onion’s bid was worth the equivalent of a $7 million cash bid, and therefore was more valuable than the Jones affiliates’ $3.5 million cash bid.
It’s just math. The Onion bid was higher, and the judge said that the losing bid should’ve been given an opportunity to improve the bid to get a chance to win, and maybe raise even more money.
Murray valued it at that amount, it didn’t have that real value. Even future payments were a percentage of profits and but not guaranteed.
That equivalence is only theoretical, not real. If you think they can write "it’s 7 million but I let you hav 5.75, then we can have the bid at 99 trillions! Why not? They can just say they only Want 1.25.
Even future payments were a percentage of profits and but not guaranteed.
That’s not part of the bid. The bid only had two components: a cash portion and a commitment to reduce claims by certain creditors. For non-participating creditors, it’s the exact same equivalent as a $7 million cash payment to the estate.
Future promises were made to families to incentivize them to reduce their claims (and therefore bring more money to the estate), but that’s not part of the bid itself.
I think you’re struggling to understand what’s happening here because you’re so anchored on your initial incorrect perceptions.
It’s not future payments promised. Just a division of who to split the proceeds with. And so for the typical creditor who didn’t credit bid, The Onion’s bid was worth the equivalent of a $7 million cash bid, and therefore was more valuable than the Jones affiliates’ $3.5 million cash bid.
It’s just math. The Onion bid was higher, and the judge said that the losing bid should’ve been given an opportunity to improve the bid to get a chance to win, and maybe raise even more money.
Murray valued it at that amount, it didn’t have that real value. Even future payments were a percentage of profits and but not guaranteed.
That equivalence is only theoretical, not real. If you think they can write "it’s 7 million but I let you hav 5.75, then we can have the bid at 99 trillions! Why not? They can just say they only Want 1.25.
That’s not part of the bid. The bid only had two components: a cash portion and a commitment to reduce claims by certain creditors. For non-participating creditors, it’s the exact same equivalent as a $7 million cash payment to the estate.
Future promises were made to families to incentivize them to reduce their claims (and therefore bring more money to the estate), but that’s not part of the bid itself.
I think you’re struggling to understand what’s happening here because you’re so anchored on your initial incorrect perceptions.