First, I don't mean to criticize you for the decision you made.  I only want to point out that the decision they made to make such an offer, in my opinion, is criminal.

Second, I would hope that they are doing well now.  They didn't pay all of the previous debt they racked up with abstractors.  I would be doing great if I called up the bank and said, "I'll tell you what, I'll keep making payments if you cut my principal in half - otherwise I'm done!"  They basically stole money from everyone who didn't accept their ransome deal to pay you half of what you were owed in return for you to continue to do their work.  I suppose it would have been okay to make that deal with you if they were still paying everyone who didn't take the deal - but then, why would you have accepted half?

Third, if this company can get away with it, what is to stop every company from "reoganizing" in a similar fashion?  Its the same company, regardless of any technical reorganization, and I would guess a court would feel the same way in a veil piercing suit.  They fraudulently formed a new corporation to escape their debts.

I can understand that the deal may have worked out for you.  The only criticism I would have of you is that you helped them rip-off all of the other abstractors by allowing them to remain in business and escape the consequences of their poor management.  They should have been forced into bankruptcy and paid whatever they had to everyone - instead, they played favorites and decided to pay some people and stiff everyone else.  Instead of paying everyone a portion of what they were owed, they used their available resources to continue in business despite their obligations to all of those who did work for them "pre-reorganization."

Like I said - to me, that is criminal.

Best,
Robert A. Franco
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