Raw deal. (Wall Street West).Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. venture capital firm San Vicente San Vicente (sän vēsān`tā), city (1993 pop. 28,529), central El Salvador. Among its industries are textile manufacturing and sugar milling. San Vicente is the commercial center of a region that produces coffee and sugarcane. Group, whose takeover by investors was chronicled by the Business Journal in January 2002, has filed for Chapter 11 bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection so the company won't have to pay the legal bills of the ousted management it has been battling in court. "This was the most appropriate way for us to protect your interest and that of creditors against those who were seeking to destroy them San Vicente's board of directors said in a letter to shareholders explaining the bankruptcy filing. The legal battle pits San 'Vicente's shareholders against the company's former management. Shareholders took the company over in late 2001 and sued the former management, alleging it was using the company as its personal piggy bank. That prompted a counter-suit, and because of a provision in the company's by-laws, the company was stuck paying all the bills. "They have filed a bankruptcy that we consider to be a sham False; without substance. A sham Pleading is one that is good in form but is so clearly false in fact that it does not raise any genuine issue. ," said Michael Diamond For the Australian Trap shooter, see . Michael Diamond, also known as Mike D (born November 201965), is a founding member of New York hip hop trio the Beastie Boys. , head of the Los Angeles litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. group at Milbank Tweed Hadley & McCloy, who represents some members of the ousted group. "It's just to avoid their obligations under Delaware law." Last year, San Vicente's shareholders voted to return $17.6 million in cash to investors, leaving the firm with $5 million to manage the its investment portfolio and fight the legal battle. Assets in the portfolio, purchased for $5.4 million, are now worth just $500,000, said Peter Fuhrman, San Vicente's current chief executive. "These lawyers are billing something in excess of $50,000 a day by our estimate," Fuhrman said. "This outrageous legal spending left us with no alternative but to file for Chapter 11 to protect the interests of our shareholders and creditors." |
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