NewsBankruptcy and Restructuring partner Patrick Collins was quoted in Bloomberg article, “Disney Offers $180 Million Soft Landing to Staff at Bankrupt AI Firm,” examining Disney’s proposed agreement to hire employees of Character Technologies following the AI company’s Chapter 11 bankruptcy filing.
The agreement, which remains subject to bankruptcy court approval, is part of a broader licensing deal between Disney and Character Technologies. The proposed transaction also raises important questions about the protections available to purchasers of assets in bankruptcy and the potential liabilities that may survive a sale.
From the article:
“The bankruptcy laws are designed to allow Disney to acquire the assets free from liability,” said Patrick Collins , a restructuring lawyer at Farrell Fritz, a law firm that isn’t involved in the case.
What’s uncommon in Character’s bankruptcy is the fact that Disney has already paid $7.5 million of its $20 million purchase price before the AI firm filed bankruptcy this week, Collins said.
Read the article here: Disney Offers Soft Landing to Staff at Troubled Character.AI – Bloomberg