4 ms·

It was the preferred outcome by the majority of his creditors, not by all his creditors (note that preferred != economically best). If the creditors were unanim

It was the preferred outcome by the majority of his creditors, not by all his creditors (note that preferred != economically best). If the creditors were unanimous in their preferences, there would be no issue before the court.

Retric 2y ago
No the judge stated he believes it could be sold at a higher price not that the deal wasn’t structured properly. There’s been confusion on the math. Because one party was forgoing a portion of their share everyone else not just the other victims would be better off financially. ps: Economic maximization alone isn’t relevant here. The underlying economic value matters when individuals aren’t voluntarily participating in a transaction. If I destroy your car then I owe you based on the cars worth, but if you trade in your car moderately under blue book perhaps you’re just in a hurry.
- pclmulqdq 2y ago
  I think the word "preferred" has been a bit overloaded in this discussion. There is a sense of economic advantage that you may be using, and this deal in that sense is "preferred" for everyone. There is the other sense of stated preferences, and this deal is clearly not in the stated preferences of one of the parties (hence the appeal to a court). I think if the creditors unanimously wanted this to happen, it probably would not have been reversed over the idea that there could have been a higher value. The fact that this issue was raised to a court indicates that at least one creditor did not prefer it.
  - Retric 2y ago
    The article mentions Alex Jones was objecting to the transfer rather than creditors. Having a new round of bidding, especially with increased publicity is a reasonable thing to do. I’m simply agreeing with independent 3rd parties who state that The Onion’s bid was larger and better for the creditors. Alex Jones clearly doesn’t want his life’s worked turned into such an obvious mockery, but while he’d love to sell these business to his parents for 1 dollar but the courts are acting to maximize the transaction’s value. Thus he can only object in terms of monetary value not his personal preferences.

Retric 2y ago

No the judge stated he believes it could be sold at a higher price not that the deal wasn’t structured properly. There’s been confusion on the math. Because one party was forgoing a portion of their share everyone else not just the other victims would be better off financially. ps: Economic maximization alone isn’t relevant here. The underlying economic value matters when individuals aren’t voluntarily participating in a transaction. If I destroy your car then I owe you based on the cars worth, but if you trade in your car moderately under blue book perhaps you’re just in a hurry.

pclmulqdq 2y ago
I think the word "preferred" has been a bit overloaded in this discussion. There is a sense of economic advantage that you may be using, and this deal in that sense is "preferred" for everyone. There is the other sense of stated preferences, and this deal is clearly not in the stated preferences of one of the parties (hence the appeal to a court). I think if the creditors unanimously wanted this to happen, it probably would not have been reversed over the idea that there could have been a higher value. The fact that this issue was raised to a court indicates that at least one creditor did not prefer it.
- Retric 2y ago
  The article mentions Alex Jones was objecting to the transfer rather than creditors. Having a new round of bidding, especially with increased publicity is a reasonable thing to do. I’m simply agreeing with independent 3rd parties who state that The Onion’s bid was larger and better for the creditors. Alex Jones clearly doesn’t want his life’s worked turned into such an obvious mockery, but while he’d love to sell these business to his parents for 1 dollar but the courts are acting to maximize the transaction’s value. Thus he can only object in terms of monetary value not his personal preferences.