Some clarification of the whole Bluewater fiasco.
We all know, and if you don't know, you should know, that last Fall, Bluewater partners was granted a 'writ of attachment' on Helix's assets by the Superior Court of California, County of Orange, as they are currently in a lawsuit against Helix for 647K. Even though helix claims they are only owed 348K. see below.
As previously announced, on October 6, 2010, the Company received notice issued from the Superior Court of the State of California, County of Orange (the “Court”), of a lawsuit filed by Bluewater Partners, S.A. (“Bluewater”) against the Company seeking damages in the amount of $647,254.18 relating to allegations that the Company breached its obligations to repay Bluewater under promissory notes issued by the Company. The Company has promissory notes due to Bluewater recorded on its financials in the amount of $348,164 (before accrued interest), but does not believe any additional amounts are owed to Bluewater. The Company does not have sufficient capital resources as of the date of this report to repay any amounts to Bluewater, and the Company has not responded to the lawsuit as of the date of this report. On November 16, 2010, the Company received a Notice of Ruling from the Court granting Bluewater’s request for a writ of attachment against the Company and its assets in the amount of $647,254.18. The ability of Bluewater to perfect on a writ of attachment against the Company and its assets will have a material adverse effect on the Company and its operations.
Many of us, including myself, figured that meant that Bluewater was granted Helix's assets. Meaning Bluewater would now own Helix's stuff. Embarrassingly, I just assumed that was the verdict and mistakenly did little DD to better understand the matter. For those that already know what a 'writ of attachment' is, you know that i was wrong to assume what I assumed. For those that don't know, a writ of attachment is down below.
Provisional remedies allow a creditor to exercise some control over the debtor’s assets before judgment. Because it often takes months or even years to obtain a judgment after a lawsuit is filed, provisional remedies are extremely important to creditors. The most important provisional remedy for unsecured or under-secured creditors is the writ of attachment. A writ of attachment permits a creditor to obtain a judicial lien against the debtor’s property or have the sheriff or marshal seize and hold the debtor’s property until trial. It generally prevents the debtor from selling, transferring, or encumbering the attached property until the case is resolved.
Now, obviously this still isn't a good thing. It still sucks. If i was Bluewater, I'd do the same thing. But, at least it doesn't mean that Helix no longer owns it's assets. It just makes it so they can't sell it or transfer it. For those that knew this, well, good for you! For those that didn't. Well, I hope it clears things up for you. It did for me. I'll sleep a little better now. Not a lot better. I'll probably will still wake up grumpy.
Good luck to all.
