
Venture-backed Co Filed for Chapter 11 bankruptcy – to evade a patent dispute - bhartzer
https://techcrunch.com/2017/05/08/this-venture-backed-company-just-filed-for-chapter-11-bankruptcy-to-evade-a-patent-dispute/
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siegel
This seems like an incredibly odd strategy and unlikely to be successful. Not
a bankruptcy lawyer, but I'm not sure what they are hoping to achieve. Yes,
the automatic stay would temporarily prevent BrightEdge from obtaining
injunctive relief to prevent the U.S. Searchmetrics sub from using the
technology at issue in the patent lawsuit. But that's not going to last
forever.

BrightEdge is probably the biggest creditor, by far. So, in the end, what?
BrightEdge ends up owning Searchmetrics U.S.?

That aside, I don't see how this passes the smell test for a bankruptcy
filing. One contingent liability for alleged patent infringement provides a
basis for Searchmetrics U.S. claiming its insolvent? It should probably just
get dismissed as a bad-faith filing.

