Ten Ton Hammer (and Cameron at Random Battle which is where I saw it) is reporting about the latest chapter in the Perpetual saga. In a nutshell, Perpetual’s PR company, Kohnke Communications, is suing them to get paid and alleging that they fraudulently transferred assets out of Perpetual before initiating the assignment for the benefit of creditors (which is, in greatly oversimplified terms, a common law bankruptcy) thus impoverishing Perpetual and thereby preventing them from paying Kohnke’s bill (at least in full). Lots of other stuff in there too, but that’s the main gist of it.
But why risk mischaracterizing it? Here is the actual complaint in full. Read it yourself here(pdf) and make your own conclusions. Keep in mind this is a complaint and the facts alleged are just that– the facts as alleged by the plaintiff in the case, not necessarily what they may be proven to be. My original post is here with some background.
Seems my speculation on Bildo’s site was pretty close to the mark. Seems Perpetual was playing it pretty close to the vest and being more than a little cute about what they were saying when they were saying it. If the facts in the complaint are true, then indeed the shell game occurred just prior to the assignment for the benefit of creditors, of which the filing of the notice by Gravity started this whole story.
[Update] For those of you scoring at home, P2 Entertainment, Inc., the entity to which the assets were alleged to have been transferred, appears to have been formed on October 3, 2007 according to the Delaware Secretary of State.
The hits just keep on coming for Perpetual.
[Another update: I borked the original linked pdf. Its fixed now]