SOFTBANK RESTRUCTURING FRAUD: A CLEAR AND PRESENT DANGER

Softbank restructuring fraud is a destructive–but real–twist on business restructuring models.  Most corporate restructuring occurs through new opportunities and effective marketplace execution–and sometimes through a Chapter 11 bankruptcy filing.  But Softbank, the well-known “software company,” “venture capital fund,” hedge fund, keeps finding new ways to restructure its business through fraudulent market manipulation.  Continue reading “SOFTBANK RESTRUCTURING FRAUD: A CLEAR AND PRESENT DANGER”

GLOBAL EAGLE ENTERTAINMENT BANKRUPTCY: HEDGE FUND DRIVEN

Global Eagle Entertainment (NASDAQ: ENT) filed bankruptcy under Chapter 11 on July 22, 2020.  Global Eagle Entertainment is a Los Angeles based company, but is incorporated in Delaware.

Global Eagle Entertainment provides in-flight internet connectivity and entertainment to the airline industry.  This bankruptcy filing is a perfect example of a now-established trend: using Chapter 11 to recapitalize a company’s balance sheet and expedite an asset sale to hedge funds or private equity firms.  Continue reading “GLOBAL EAGLE ENTERTAINMENT BANKRUPTCY: HEDGE FUND DRIVEN”

INGENU INC BANKRUPTCY: IOT PATENT PORTFOLIO

Ingenu Inc bankruptcy was filed under Chapter 11 on July 27, 2020 in San Diego. Ingenu Inc’s current business is an “Internet-of-Things” (IOT) network. It hopes to deploy these new networks in major cities around the world.  It apparently has an IOT network running in the Dallas Fort Worth area for which the company claims a successful proof of concept. Continue reading “INGENU INC BANKRUPTCY: IOT PATENT PORTFOLIO”

JAGUAR DISTRIBUTION CORP. CHAPTER 11: MOVIE LICENSING CONTRACTS

Jaguar Distribution Corp. licenses independent films to airlines for in-flight viewing.  The company filed for Chapter 11 reorganization on July 31, 2020 in Los Angeles (San Fernando Valley Division).  The bankruptcy filing was apparently triggered by the pandemic-related reduction in airline travel worldwide.

The unique feature of this Chapter 11 filing is that virtually all of its creditors (including the 20 largest creditors) are movie licensors for whom Jaguar Distribution Corp. acted as licensing agent.

This puts the company in a difficult position under bankruptcy law: Continue reading “JAGUAR DISTRIBUTION CORP. CHAPTER 11: MOVIE LICENSING CONTRACTS”