Replies to post #42366 on Liquidmetal Technologies Inc (LQMT)

[riese713]

No bankruptcy - Barney Visser will not wipe out his value of shares AND put his contract as the exclusive manufacturer at risk.

http://www.lexology.com/library/detail.aspx?g=4f07dcbd-f500-4dd2-8832-fc28a1550e9e

Per the link above: Assumption and Assignment of Contracts in Bankruptcy

"Section 365 of the Bankruptcy Code authorizes a debtor-in-possession to assume, assign, or reject executory contracts, provided certain statutory requirements are met. While not defined in the Bankruptcy Code, the definition of an executory contract most often used by bankruptcy courts is one where “the obligation of both the debtor and the other party are so far unperformed that the failure of either to complete performance would constitute a material breach excusing the performance of the other.” Assumption or rejection of executory contracts can be accomplished either by motion or through a confirmed plan of reorganization. The debtor must assume or reject contracts in their entirety, and cannot pick and choose to keep those portions it deems desirable. In addition, multiple contracts are occasionally so integrated that they can only be assumed or rejected together."

Even if Barney "won" in the arbitration - he will not devalue his existing shares to zero AND put at risk his exclusive manufacturing agreement by bankrupting this company.

Bankruptcy is NOT going to be an outcome of a negative ruling against LQMT, if LQMT loses arbitration.

If LQMT wins in arbitration, Barney may owe damages to LQMT and see his original contract agreement voided.