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Affymax, Inc. Message Board

  • godwinpeak godwinpeak May 1, 2013 12:08 PM Flag

    Another Great Advantage of Chapter 11 for Affymax

    I forgot to mention in my other posts about some of the benefits of Chapter 11 for the officers and directors. It concerns potential liability for decisions that may prove adverse to shareholders. For example, let's take the Takeda/Affymax $180M milestone-royalties deal IF O comes back to market. What is that worth? What if the officers and directors try to sell it or transfer it to another company? Under Chapter 11 reorganization, major decisions like that are only undertaken after COURT APPROVAL. Once the Bankrupty Court approves the action, any question of officer/director liability to shareholders in connection with the decision is conclusively resolved in favor of the court approved action and the officers/directors have no fear of any potential liability.

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