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The creditors agreed to and supported the Global Tetrahedron plan to purchase Infowars and settle the bankruptcy. Seems like the judge is overstepping given Del
by a12k 2y ago
The creditors agreed to and supported the Global Tetrahedron plan to purchase Infowars and settle the bankruptcy. Seems like the judge is overstepping given Delaware law on this matter.
- ensignavenger 2y agoBankruptcy law is federal law, Delaware law has nothing to do with it.
- a12k 2y agoThey typically file in the United States Court for the District of Delaware, a federal court located in Delaware. Delaware law plays a significant part in these cases even though they’re in Fed court. Corporate charters, filings, fiduciary duties, property rights, choice of laws, etc etc etc are all determined by Delaware law and used in the federal court. Federal Bankruptcy Law provides the procedural framework. So, Delaware law does in fact have nearly everything to do with it.
- dragonwriter 2y ago> Federal Bankruptcy Law provides the procedural framework. Federal bankruptcy law sets the substantive as well as procedural rules for bankruptcy, and its substantive provisions trump any state law, but, OTOH, state law has some role both in determining what the set of claims going in to bankruptcy are and, to the extent permitted in federal bankruptcy law, setting things like allowable personal exemptions, etc.
- a12k 2y agoYep! This is all correct. The point remains, however, that Delaware law does have a substantial amount to do with bankruptcy proceedings in Delaware, which is really the point I was responding to.
- ensignavenger 2y agoI may have been wrong to say "nothing" but from what I understand Delaware law has very little to do with it and I don't see how it would be relevant to this particular ruling, but I am always open to learning more as I find the topic of law quite interesting.
- maxlybbert 2y agoThis bankruptcy was filed in Texas. How would the corporate charter affect the fairness of how the auction was conducted?
- a12k 2y agoI don’t know in this case specifically. In the typical case though I’ve seen corporate charters enhance fiduciary duties, I’ve seen them specify auction procedures, I’ve seen them give certain classes certain rights, and most importantly for this case I’ve seen them define corporate governance during the auction sale. So potentially has massive implications for the auction and its fairness.
- bandrami 2y agoThere are (AFAIK) no Federally-incorporated firms though
- JackFr 2y agoTalk to Elon about Delaware judges overstepping...
- floydnoel 2y agoDelaware judges seem to have a penchant for that lately. Certainly not a good look.
- hedora 2y agoAlso, as a Trump appointee, and given the relationship between Trump and Jones, the judge should recuse themselves. If this case were an article in The Onion, it'd seem too unrealistic to be funny. Well done, Global Tetrahedron!
- peterfirefly 2y ago[flagged]
- djbusby 2y agoIf the relationship is demonstrated to be as close as the Jones-Trump-Judge in this one, sure. Recusal is evaluated case-by-case so an all-for-everything situation, like you've described, is unwarranted.
- op00to 2y agoIndeed - is there a history of democrat-nominated judges acting in corrupt manner enriching the politicians that nominated them? We're not comparing apples to apples here. One team is playing by the rules, and one team has burned the rule book, eaten the ashes, then shit out the ashes, then ate the shit again.
- sharkjacobs 2y agoWhat's a BLM case? Do you have an example? If the judge has a one degree of separation personal relationship with the party, then yes, they should.
- rtkwe 2y agoThe main reasoning by the judge seemed to be that a single round sealed bid process is unlikely to maximize the sale price which on it's surface seems pretty accurate. So long as the families forgoing parts of their judgements is allowed to be part of the bids though any competing bids seem doomed, it's a big war chest they can throw around that's essentially meaningless because they'll never be able to collect it anyways.
- JumpCrisscross 2y ago> main reasoning by the judge seemed to be that a single round sealed bid process is unlikely to maximize the sale price which on it's surface seems pretty accurate Did the judge argue against the single round or the sealed price? Criticising sealed bids is nonsense. The gold-standard auction (Vickrey, or more accurately, VCG) features sealed bids. If the judge is criticising sealed bids at all, The Onion should appeal. Criticising a single-round auction, particularly with two bidders, on the other hand, is valid. > as the families forgoing parts of their judgements is allowed to be part of the bids though any competing bids seem doomed, it's a big war chest they can throw around that's essentially meaningless because they'll never be able to collect it anyways Isn't it also meaningless if the person whose estate they're collecting is bidding against them?
- whimsicalism 2y agomulti-round or not, they should still be equivalent in expected revenue to VCG - no?
- JumpCrisscross 2y ago> multi-round or not, they should still be equivalent in expected revenue to VCG - no VCG is second price, so we're already in a sub-optimal regime with a first-price format. (All while illustrating why Vickrey auctions don't work with unsophisictated observers. Could you imagine the shitshow if The Onion won and then didn't have to pay their bid, but Jones's?) Given first price, I don't think the number of rounds is revenue equivalent.
- deleted 2y ago[deleted]
- adolph 2y ago> Seems like the judge is overstepping given Delaware law on this matter. What does Delaware have to do with it? If DE had any jurisdiction, what law would have been broken? https://www.dailydac.com/wp-content/uploads/2024/10/0859-Winddown-Order.pdf https://www.dailydac.com/wp-content/uploads/2024/10/0859-Win...