Good morning!
I have a question about these numbers in the revised waterfall. There should not be a UO!IP created to receive extra cash either way, but I am seeing the numbers a little differently and want to see if I'm on the same page, because I think I'm getting the 'net' piece of this confused.
% recovery in our revised 'worst-case', this is from page 39:
Bentham: 25%
Mishcon: 28.5%
IPNAV: 22%
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That's a total of 75.5%
Of the rest, or remainder, 50% of that goes to CBV (12.25%)
SO, what I see there is the Unified/Chanbond remainder is 12.25% of the total settlement.
With his newly formed company, Billy takes 20% of that piece off the top. Now... for Billy to skim 20% of that to his little
UO!IP company is clearly shady and problematic... but as I read it and as the revised shows, it looks like Unified Net at the end is 9.8% of the total.
That's not great and I certainly have no desire to give Billy an extra 20% off the top (He's still a shareholder so he's going to get about half of the UOIP portion either way. There is no reason for him to take more). The thing is, this little insertion in the revised waterfall takes our % down from 12.25% to 9.8%, and I don't see the 1%. While I don't see us as 1%, the problem here to me is that, like Diedre alleges, Billy could settle for low dollar amounts, but then funnel any future licensing through UO!IP and that's where the money goes.
So in short, I read it as 10% rather than 1%.... but that it's still a problem because
# 1. Even a 20% theft is still theft, and
# 2. Because it could end up being much more than 20% going to Billy under some 'kickback' scenarios where he does a low settlement and high licensing arrangement.
Thanks for any thoughts on how I'm reading this! Hope everyone has a great 2021!
