For all intents and purposes, the greatest model train litigation saga in history is finally over!!!
According to a court document filed yesterday, Oct. 23, “Lionel and MTH have entered into the MTH Settlement Agreement, which resolves all MTH Claims, including the Patent Infringement Claim discussed below, and all pending litigation between the parties. The effectiveness of the MTH Settlement Agreement is contingent on the effectiveness of the Plan.”
The “Plan” referred to is Lionel’s Plan of Reorganization. While nothing in life is certain–except death and taxes–the realization of Lionel’s Plan of Reorganization is highly likely. The terms of the settlement are and will remain confidential. The settlement was actually reached on Oct. 12.
The relevant sections of the court document state as follows:
"(d) Appeal of Estimation Order; Second Mediation; Settlement
On August 13, 2007, MTH filed a notice of appeal with respect to the Estimation Order. The appeal was docketed in the United States District Court for the Southern District of New York on September 10, 2007 and assigned to the Honorable Richard M. Berman with case number 07-Civ-7946 (RMB).
On September 25, 2007, MTH sent a letter to Judge Berman requesting a settlement conference with Judge Berman or a magistrate judge. By endorsement of the letter on September 27, 2007, Judge Berman ordered that the parties meet with Magistrate Judge Gabriel W. Gorenstein to discuss settlement. The parties submitted confidential mediation statements to Judge Gorenstein on October 9th and met with Judge Gorenstein on October 12, 2007, at which time they were able to reach agreement on the terms of a settlement. As a result, Lionel and MTH have entered into the MTH Settlement Agreement, which resolves all MTH Claims, including the Patent Infringement Claim discussed below, and all pendi
I’m glad it’s over and that there was no winner or loser. Now all concerned can start putting more of their respective resources towards making better trains.
No doubt… Tony is a respected individual within the O-Gauge community, but for him to post that is just insane, when all one has to do is look up the Federal Court filings and read them for themself! That single post, IMHO, makes him look like he has alterior motives and makes one seriously question his credibility on this subject. My guess is he didn’t get word from Mike and jumped the gun…
This isn’t OVER yet, it is CLOSE, but not OVER. Lionel must successfully exit bankruptcy and adhere to their reorganization PLAN… and the PLAN must be approved by MTH? No one finds that odd?
And the post by Bill Terry made me crack up…
isn’t a settlement with MTH contingent on exiting bankruptcy. The most difficult portion of this whole mess will be getting acceptable covenants to exit bankruptcy. With tight money, not many lending institutions will be lining up to gamble on a bankrupt electric train compamy.
Ummm… Yes… Ummm… No it is not, there are hundreds of companies that file and exit bankruptcy court every year… Ummm… no company is lending Lionel money at this time. They are a Privately held company that is making loads of money off endorsement deals, and I’m sure there is sufficient Private Investment being made in the company… Neil Young… ever heard of him?
The people over there need to take a valium… goodness… I did like Allan’s
Let’s not forget that Lionel’s “bankruptcy” was really just a legal move made to protect the company from paying out the original $40M verdict against them.
My wife works for a very small company and they have a very deep pocketed investment group. My point was for a company with Lionel’s history it would not surprise me if there weren’t people that would happily invest in them… I was pretty sure they had to have secured financing prior to the filing, but wasn’t 100% certain, I know you can generate revenue during the bankruptcy process, but I don’t think you can secure additional ‘financing/loans’ until after the company completes the reorganization plan…
October 25, 2007-My goal is to keep this report short and sweet (a novel concept for a lawyer). Here is the current status of the MTH Lionel settlement as of this morning.
MTH’s and Lionel’s lawyers were back in bankruptcy court this morning. Lionel CEO Jerry Calabrese and Mrs. Martin Davis were present. MTH’s Mike Wolf was not. It was not necessary for him to be. I also attended today’s proceedings.
Lionel had two motions on before the court, 1) requesting the court approve the disclosure statement for the joint plan of reorganization under chapter 11 of the bankruptcy code and 2)granting a sixth extension of the exclusive period in which only Lionel may file a plan of reorganization with the court for a period of 60 days (to December 17, 2007). MTH, which originally opposed both motions, withdrew their opposition yesterday. After Lionel’s attorneys, Adam Harris, and then Abbey Walsh, briefly discussed the merits of both motions, they were quickly approved by Judge Lifland. Written orders were entered lat
