Flav wrote on Dec 19
th, 2016 at 2:38pm:
Depends...
It might be a move to save DDO and Lotro from Turbine going Chapter 11...
Honestly it would be extremely strange for WB to disvest the Lotro IP when it's the reason they bought Turbine.
Oh and no word about AC future...
Overall I smell a coffin for Turbine, and WB is going to buy that New indy studio in a feu month
This is unlikely, imo. Turbine/WB would have to disclose the intent to file chapter 11 in due diligence to the prospective buyers, as they have to validate that the asset is unimpaired. Impairments would include pending intent to file chapter 11, as well as any potential liens on assets of the corporation. In a chapter 11, the creditors of Turbine (or the BK trustee) could challenge a previous asset sale as a preference, and/or a violation of fiduciary duty, depending on how long ago the sale happened and what the price and terms of the transaction were. Not disclosing it would expose WB to significant liability if there were problems down the road during a BK.
If Turbine/WB discloses it, nobody would buy the distressed asset for the above reason (you can't be sure the BK process won't fuck you). The only safe course to acquire the assets in this situation would be to do a pre-packaged Chapter 11 with the buyer going in as a stalking horse for the asset purchase. This has its own risks, but much lower than buying a distressed asset and then finding out a few months or a year later that you don't own the asset anymore. Clean ownership of the code and licensing is crucial.
Further, it would be frowned upon (read: illegal) heavily to take a distressed sub corporation you own, sell off the key assets, stick the company with no assets and a mound of debt in the BK trash can and screw the creditors and then buy back the key assets into a different sub corporation you own. It would look like you were hiding assets from the BK process to screw the creditors. Which you were.