The company was 4Kids Entertainment. (The holder of US rights to Pokémon, Yu-Gi-Oh and a bunch of other Japanese shows.
They were forced into Bankruptcy when their main supplier of content (from Japan) walked in one day and said they were terminating their agreement.
The company had previously had a cash balance that Lehman had invested it for. During discovery they showed what they had asked Lehman to do - put it in municipal holdings and money market funds. Instead they dumped it into crap. That $80M went bye bye.
They settled with Lehman for $8M for their lack of fiduciary duty but they had this $80M unsecured claim that they needed to monetize in bankruptcy. A small shop (probably 1 or 2 guys) offered to buy it for 400k. I remember being shocked that it went for so little. There was no auction or bid.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.