"Intangible assets and intellectual property are indeed a primary value source for a broad range of sophisticated national and multi-national companies. These assets are a new source of financial strength as well as security and securitization."
This case study discusses Wellington Leisure Products Inc. (WLP) (seller), a consumer products manufacturer with diverse product lines: cordage (rope), both commercial and retail; PDFs - life vests; pool toys; patio furniture (wood furniture, umbrellas, and replacement cushions); and hunting products (deer hunting scents/lures). The seller was operating in chapter 11, run by a turnaround manager who was brought in after fraud was alleged. The seller had no secured debt, and about $65 million in unsecured debt, about $40 million of which was with banks.
The Asset Sales Committee had a very lively session at the 15th Annual Winter Leadership Conference held on Dec. 4-6, 2003 in beautiful La Quinta, Calif. The first half of the session was devoted to a discussion of intellectual property issues in bankruptcy asset sales. The discussion was led by committee co-chairs S. David Peress (The Ozer Group; Needham, Mass.) and John G. Loughnane (Gadsby Hannah LLP; Boston, Mass.).