Those of you who’ve been following the comments of the Gen Con sale story already know, but it’s worth repeating in the main news feed: according to Adrian Swartout, President of Gen Con LLC, the “Gen Con Acquisition Group” that filed a letter of intent to buy Gen Con – well, that’s most likely a hostile takeover attempt in progress. In a press statement earlier today, Swartout had the following to say about the Gen Con Acquisition Group letter:
“We believe this offer was clearly timed to disrupt our ability to get a plan confirmed and is an attempt at a hostile takeover with the intention of ousting Peter Adkison as the owner.
The offer was suspiciously cryptic, with no letter of introduction, good will, or summary of intentions for forward management and opportunities for current staff. Given the date of submission, the lack of prior outreach from this group, and the overt omission of intentions regarding management of business operations, it was difficult to take this offer seriously. Itâ€™s from an anonymous group that clearly does not understand the value Peter brings to Gen Con. Any acquisition offer that relies on future profits of the business to service the outstanding debt that does not have a provision for Peterâ€™s continued involvement is not a sound offer.
[...] I have diligently reviewed the offer in conjunction with our creditor committee and we have determined it is a high risk proposition with far too many negative implications and is not in the best interest of our creditors. It is our intent to disregard this offer and continue toward confirmation of a plan substantially similar to the offer filed with the Court.”
It seems unlikely that this is the last we’ve heard of the Gen Con fiscal recovery situation. We’ll keep you posted if we hear anything else.
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