It’s been a while since we’ve last heard about Xyience, huh? Well, here’s a good interview and update on the whole situation. If you don’t have the 10 mins to go over this properly, here’s a very general overview of the accusations: original Xyience owner is a crook, last Xyience owners purposefully ran the company into the ground, Fertitta brothers gave out a bogus loan specifically so they could seize all of Xyience’s assets, and Rich Bergeron is being sued for reporting on SEC investigations that apparently scared away potential investors.
It’s all a very interesting story if you’re into behind the curtain corporate tales. Things got pretty hot when a bunch of lawsuits were filed back in March, and while shit has cooled down from a media perspective (aka the three blogs posting about it haven’t updated the story), court dates have finally begun approaching so things could get interesting again very soon.
New details from this article include the following:
Winning in court is the only way Xyience equity holders will get anything. Their lawsuit names as defendants nearly everyone who ran Xyience after Pike departed. For example, the shareholders’ lawsuit accuses Roseman and Brauckmann of giving the proceeds of the $2.50-per-share stock sale to Key Management LLC, an entity they owned, and not to Xyience.
The shareholders also allege that Jeff Dash, Xyience’s CFO from August 2006 to May 2007, knew what Roseman and Brauckmann were doing, didn’t report it to the board and got paid for his silence. And because the money never reached Xyience, production and shipment of products stopped by the middle of January 2007.
And then there’s what’s coming up, including the fact that the fat cat shit can’t be dealt with until Rich Bergeron’s countersuit is dealt with:
The Fertittas have asked that the countersuit be dismissed, but Fennemore Craig’s Davis says Nakagawa now must resolve the counterclaims Bergeron brought against the Fertittas before he can decide whether to dismiss the case.
A status conference on the shareholders committee’s and Bergeron’s lawsuits is scheduled for Oct. 8. In the shareholders lawsuit, Nakagawa is expected to rule on the defendants’ motion to dismiss and Xyience’s motion to substitute itself as the real party in interest, says the attorney close to that case. A status conference on the unsecured creditors’ committee’s lawsuit will take place the same day. Zyen and the Fertittas have sought dismissal for that case, too.
Ain’t it all FUBAR? I love it!