A rival bidder associated with Jones, First United American Cos., offered $3.5 million in cash, or twice as much cash as The Onion’s parent company. First United American is a limited liability company affiliated with Jones’ dietary supplements business, and its bid had Jones’ blessing.
The Jones one was the largest of the two, but the onion was favored by the families
The value of the Onion’s bid was $7 million ($1.75 million in cash, $5.25 million in credit), when you include the credit bids from the families. That’s where you’re getting tripped up in trying to understand what the court was ruling.
It’s not future payments promised. Just a division of who to split the proceeds with. And so for the typical creditor who didn’t credit bid, The Onion’s bid was worth the equivalent of a $7 million cash bid, and therefore was more valuable than the Jones affiliates’ $3.5 million cash bid.
It’s just math. The Onion bid was higher, and the judge said that the losing bid should’ve been given an opportunity to improve the bid to get a chance to win, and maybe raise even more money.
That is exactly what counts as credit in this case, because this split is made possible by some other families crediting the bid. Basically writing “i dont want this money give it to someone else” on a figurative piece of paper and bidding with that instead of cash.
No, the Jones-affiliated bidder had a smaller bid, but should’ve been given the opportunity to try to outbid the then-highest bid from the Onion.
Basically the judge said that the trustee, as auctioneer, should’ve gotten the two bidders into a bidding war to maximize the price.
The Jones one was the largest of the two, but the onion was favored by the families
The value of the Onion’s bid was $7 million ($1.75 million in cash, $5.25 million in credit), when you include the credit bids from the families. That’s where you’re getting tripped up in trying to understand what the court was ruling.
No, there was no 5.25 in credit. I’m happy to see any source for that claim though.
There was some future payments promised and a better than usual split for some families, so they “valued” the bid at 7 million.
It’s not future payments promised. Just a division of who to split the proceeds with. And so for the typical creditor who didn’t credit bid, The Onion’s bid was worth the equivalent of a $7 million cash bid, and therefore was more valuable than the Jones affiliates’ $3.5 million cash bid.
It’s just math. The Onion bid was higher, and the judge said that the losing bid should’ve been given an opportunity to improve the bid to get a chance to win, and maybe raise even more money.
That is exactly what counts as credit in this case, because this split is made possible by some other families crediting the bid. Basically writing “i dont want this money give it to someone else” on a figurative piece of paper and bidding with that instead of cash.
So even with that definition, there was no 7 millions anywhere. Thanks