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The company is dead but the patent's value remains intact. It was the BOD that had suppressed the patent for eight years that was the problem. That has been ended with an order to sell the company assets "to best maximize the value for the Creditors and Shareholders." Sounds good to me. When any company goes out of business, its assets (plant, property, equipment, intellectual property, patents, etc.) retain their value and are sold to the highest bidders. Just because Turrini and Pierce apparently defrauded the shareholders in their attempt to steal the patents doesn't mean the patents suddenly become worthless. Things will settle down within the next week.
Chill. Today we are seeing panic selling. Read my previous note. The judge ordered that the Receiver maximize the pps with any of his actions. The pps will be at least 50 cents when the dust settles, probably a lot more.
Kind of a moot point. The company has no money to pay anyone. Creditors will get money only after the sale of the patents.
And what are the 'other licenses' the judge mentioned that the BOD kept secret from the shareholders?
Scottrade has frozen CLYW trading. Wonder who is doing the trading?
The order specifies that the Receiver create the largest return possible for the Creditors and Shareholders. Further, that the Shareholders be notified of every action he will take before he takes it. Go back and read it again. On a strictly objective basis, using the court's own valuation of the patent, CLYW stock is now worth anywhere from $0.50 to $5.00 a share. Today's current panic selling will abate.
That would put him in contempt of the judge's order.
No. The judge's order requires him to get the highest price he can.
Here we go... pps down to .011. Initial panic selling. I'm standing pat.
In court, both sides agreed that the value of the patent was between $100M and $1B. The judge accepted that valuation.
How strange that with the company dissolved, shares are now worth more than in the past seven years as in (potential profit from patent sale)/number of shares.
This company NEEDS our patent! Hello, Mr. Receiver? Are you listening?
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Aviation Subcommittee Suggests GPS Protections
The government announced Wednesday that "further investment cannot be justified at this time" to help LightSquared gain approval for its wireless broadband system and new GPS standards may be coming, Inside GNSS reported. The words were delivered by U.S. deputy Secretary of Transportation John Porcari in an aviation subcommittee hearing. Porcari concluded that LightSquared's most recent proposals were "simply not practical." LightSquared on Tuesday had asked the FCC to create technical standards that could protect GPS receivers from interference in the case that neighboring spectrums, such as those eyed by LightSquared, were utilized. And there may be some movement in that direction, perhaps not in the way LightSquared had hoped.
LightSquared had previously suggested that GPS receivers could be built to prevent interference from the proposed ground-based LightSquared wireless broadband system. Manufacturers have objected. One member of the Coalition to Save Our GPS, Trimble's vice-president and general counsel Jim Kirkland, has responded directly. The "suggestion that GPS manufacturers should have designed receivers to accommodate a prohibited use is simply self-serving nonsense." The National Space-Based Positioning, Navigation and Timing (PNT) Executive Committee, on which Porcari also serves as co-chair, recently proposed that "new GPS spectrum interference standards" would "help inform future proposals" for bands adjacent to GPS. According to Pocari, "We will ensure that any such proposals are clearly communicated with stakeholders and are implemented without affecting existing and evolving uses of space-based (PNT) services vital to economic, public safety, scientific, and national security needs."
via: AvWeb
They didn't care about their shares' potential value because they were trying to destroy the company and take ownership of the patents for themselves. What's 10M shares at $2.50/share when you can steal $500M? Pure greed. And the likelihood of Daic getting zero for his "settlement" just makes this turn of events even sweeter. If I've read the judge's order correctly, he has ruled that the unelected "officers" never had any authority to do any company business in the first place, and the Receiver can cancel ANY contract the BOD made with other parties, esp. where it seems almost certain a fraud occurred. In the case of the double secret probation vapor "settlement," it probably isn't worth the air it's printed on.
$500M divided by 200M shares = $ 2.50/share. Where did you come up with .15/share?
The judge's ruling is clear: 'the assets must be sold to best reward the creditors and shareholders.'
It's "bupkis," actually. And who's gonna tell the Chamber of Commerce and the Better Business Bureau that their example of a shining businesswomen has been ruled a cheat, a liar, a thief, and likely soon to be a defendant?
Truly happy? Of course not. But I see no better outcome to this criminal circus. If you think we were ever going to see a dime under former management, please send me a case of whatever you're drinking.
It is up to the receiver how much, and even if, Turrini et al get any claimed back pay and expenses. The judge's order allows the Receiver to nix any company agreements he finds fault with. And then there's the judge's finding that Turrini et al purposefully kept the patent suppressed through bad faith. Of course, this assumes Turrini doesn't suddenly get an urge to return to whatever country he can that doesn't have an extradition treaty with the US.
I am also EXTREMELY interested in the "portfolio of licenses not disclosed to shareholders." Just when you thought Turrini and Pierce could not be any worse criminals, they are shown to be!
We are free of the execrable BOD! And after the dust settles, we can go after them!
Memorandum of Opinion is scathing. Judge finds that the company was a scam from the beginning 8*( in that it was created so as to avoid scrutiny or public inspection. No one was ever elected to any position as an officer or board member. Officers and board members have used iHub to post.
Williams used the board improperly.
CLYW owes $352K to people who have funded it from their own pockets.
CLYW holds a portfolio of licenses not disclosed to shareholders.
Settlement with Daic acknowledged. CLYW ignored court order to hold an election of officers. The BOD refused to comply with the law. Williams then funded CLYW with $224K of his own money. Williams noted large and unexplained withdrawals of CLYW by Turrini and Pierce and objected. (Can you say racketeering?)
Williams lied about not being Ben Lurkin on iHub to pursue this matter.
The meeting to fire Williams was unlawful for many reasons and the number of those voting was also insufficient to fire Williams.
Both Turrini and Pierce lied about the DE lawyer who supposedly gave them the right to hold the meeting in the first place. CLYW never complied with the 2008 court order to hold elections.
The BOD has allowed the company to become insolvent, willfully.
CLYW is most egregiously dishonest in its website which presents a "glowing picture" of company health.
Williams has repeatedly posted lies on iHub to benefit himself.
The patent is readily saleable and for this reason the judge wants the company dissolved and the patent sold for the benefit of creditors and stockholders.
In summary, so much lies and deceit have occurred that the judge has taken the drastic step of dissolving the company.
The Receiver is authorized to do basically anything he feels will be best for the shareholders, including tossing-out any agreements
he feels were improper or to the detriment of the company and to pursue action against those that he believes were working against the well-being of the company. YES!! Mr. Turrini -- better have your passport available if I were you!
More... no disposition of any company assets may be done without proper communication with both creditors and shareholders...
Folks, the patents will almost certainly be auctioned to the highest bidder(s). I am not selling any of my shares.
'The Receiver shall maximize the value of the company and its assets for the benefit of the shareholders.' YES!
'The Receiver will have full and unrestricted access to ALL company documents and unrestricted power to do what he thinks is best for the shareholders.' BRAVO! If I were Turrini, Pierce, or Daic now I'd be wetting my pants.
Premature agony. If the patent is worth half its claimed value, almost every CLYW shareholder will come out ahead. I cannot believe the judge's intent was to destroy our investments.
Lightsquared is just the first company to come to mind that needs our patent or they are out of business. The US will NEVER allow them to destroy GPS and LS's huge, multi-billion dollar network won't work without blanking GPS using their current technology. I wish I knew more about the CLYW dissolution order, but, frankly, I am sitting here and kveling over what Turrini, Pierce, Daic, and the entire band of pirates are going through at this minute.
Can the judge's order be appealed? And with what money?
I strongly suspect that the secret vaporware settlement is so egregiously fraudulent that it will be one of the first items the receiver will kill. It will also be fascinating to learn where the %40M+ went, along with all of our other money.
Well, it will certainly be the test of what the patent is worth.
Post numbers would help...
Shouldn't this mean we can now go after Turrini, Daic, and Pierce for fraud, racketeering, and damages? I'm in.
Can you tell us who the receiver is?
And what of the patents?
You should re-read the excerpts of DE law that have been posted here. Receivership is NOT automatically bankruptcy. The receiver can appoint anyone he chooses to step-up and run the company for the benefit of the shareholders. He can sign contracts, make deals, pretty much anything, and the bums on the (former) BOD are OUT!
Link?
These guys are prime candidates to license our patent.
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LightSquared Asks FCC to Regulate GPS Receivers
The carrier wants rules to keep devices from using its spectrum
By Stephen Lawson
Tue, February 07, 2012
IDG News Service — LightSquared wants the U.S. FCC to set standards for commercial GPS devices to prevent what LightSquared calls interference with other wireless services.
In its latest salvo against the GPS industry, the would-be hybrid network operator filed a request on Tuesday for the Federal Communications Commission to initiate a proceeding on how to regulate some GPS receivers. Those rules would keep manufacturers from making navigation devices that use frequencies outside their assigned band, a problem that is at the root of interference issues that have kept LightSquared from launching its network, the company said.
It's not clear whether an FCC proceeding on this issue would have any effect on LightSquared's bid to operate an LTE (Long-Term Evolution) network on frequencies next to the GPS band. The carrier is required to start operating its network this year, and this type of rulemaking process can take years. LightSquared said that apart from the near-term issue of its network approval from the FCC, it wants to foster more certainty in the U.S. mobile industry.
"We filed this request because of a market failure," said Jeffrey Carlisle, the company's executive vice president for regulatory affairs and public policy. Though makers of wireless receivers have a basic obligation to make sure their devices don't use spectrum assigned to other uses, the GPS industry has been able to sell devices that use frequencies far from their assigned band, he said.
LightSquared's request is aimed specifically at devices that are supposed to use frequencies between 1559MHz and 1610MHz. That covers primarily commercial GPS devices, such as in-car navigation systems, and excludes some more advanced gear such as military receivers.
"These receivers look well outside of the GPS frequencies into our spectrum, into other providers' spectrum," Carlisle said. "We believe this requires the FCC to step in and set sensible, reasonable standards for GPS devices that encourage them to look within their band." LightSquared contends that its authorization to operate a national LTE network in its spectrum band dates back several years and GPS manufacturers should have designed their products with that in mind.
LightSquared's view of the interference problem isn't universally held, though Carlisle said "thousands of pages" of test results have shown GPS receivers improperly elbowing in on the carrier's licensed spectrum. GPS industry representatives have said the specter of a full-fledged LTE network in LightSquared's band wasn't raised until last year.
"LightSquared's filing completely ignores the clear regulatory record on this point, and its suggestion that GPS manufacturers should have designed receivers to accommodate a prohibited use is simply self-serving nonsense," the industry group Coalition to Save Our GPS said in a statement on Tuesday.
Continue Reading
http://www.cio.com/article/699676/LightSquared_Asks_FCC_to_Regulate_GPS_Receivers?taxonomyId=1375
So what happens when a company enters into this process?
Let me explain how it works.
In a receivership, the state court will act as a referee in the proceedings. The court appoints a receiver who has a trustee duty to the court.
The receiver maximizes the value of the estate and decides the best way to protect all creditors and shareholders involved. Often the receiver will liquidate the assets of the business and shut it down. But this is not always the case. The outcome of a receivership often depends on various things like the causes of the business problems, the amount of remaining money and possibility for the business to continue running.
Further, anyone going into this process should understand that it is not free. It is indeed less expensive than a bankruptcy. But the court pays receivers by the hour and there may be other fees such as an incentive fee if the receiver does a good job.
And a competent receiver can make all the difference when a troubled business needs to survive. He or she may even work closely with key employees to handle sales, marketing, production and financial matters efficiently.
If there is no hope for the business in the end, a well-appointed receiver can ensure that everyone involved receives more money than would normally be possible through a bankruptcy. If it becomes necessary for the company to be sold, the final price tag can be improved because the business is worth more if it can be run as a going concern.
http://www.businessreceivership.com/
Thank you. I'll be at the meeting to elect a new board if I have to hitch-hike there.
>>Dave also mentioned during his testimony that there were other options included becoming a non-reporting company and other ways around the SEC reporting requirement for a shareholders meeting that he proposed to both the company and the company's legal counsel on multiple occasions in the past and he provided email evidence supporting his claim. The judge congratulated Dave for his knowledge of the SEC reporting exception that would allow us to have a shareholder meeting to elect directors without being in compliance with SEC reporting requirements. The judge said only 4 or 5 people outside of the state of Delaware were aware of this exception.
<P>
!!! And why has this not been revealed before now as a way to take back our company??
You know, as long as the BOD can keep us shareholders at each others' throats, they don't have to do anything else to hurt the company.
All allegations. Documentation, please.
You and I live on different planets. Assaulting someone with your bare hands -- if indeed that happened -- never, NEVER can be be justification for responding with an automatic weapon. That happens only in Third World craphole countries. You need to watch some "Locked Up Abroad" episodes.