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Fit for purpose implied term

Re: Fit for purpose implied term

Postby atticus » Mon Dec 18, 2017 3:18 pm

I am still trying to get you to demonstrate that this is nit an asset stripping operation.
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Re: Fit for purpose implied term

Postby SPQR49 » Mon Dec 18, 2017 5:51 pm

It is common practice to "hive-up"/down/across acquired businesses as you know and render the acquired company dormant and then de-list it. This is done to save money, make money, and to align synergies. The "business clap-trap" that we spoke about.

This is not asset-stripping where the business is purchased and then the assets sold off. We are not selling them off to a third party to make a quick profit. The purchase of the business was subject to a SPA the assets have been paid for and are being transferred internally. To do that requires a further "paper sale" with exchange of consideration to make it legal, but there is no actual sale as it were as there would be with asset stripping.

Anyway, this process (I dont know if I would call it asset stripping but that in and of itself is not unlawful is it)

if that is asse
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Re: Fit for purpose implied term

Postby atticus » Mon Dec 18, 2017 6:25 pm

You are missing the point. The company sell its assets for an amount of cash that represents market value.

It has the cash to meet its liabilities. But if, say, the directors declare a dividend, it won't. And they may face questions if a claim cannot then be met.
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Re: Fit for purpose implied term

Postby SPQR49 » Tue Dec 19, 2017 5:41 pm

No dividends have been declared.
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Re: Fit for purpose implied term

Postby atticus » Tue Dec 19, 2017 6:02 pm

That is past tense. I am asking about the future.
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Re: Fit for purpose implied term

Postby SPQR49 » Tue Dec 19, 2017 7:20 pm

No dividends will be declared.
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