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Update on Xyience bankruptcy situation
By Zach Arnold | February 6, 2008 | Print This
Some interesting developments. Tomorrow, there will be a hearing in front of LV judge Tim Williams as to whether or not Xyience’s motion to win their cause against Rich Bergeron (based on a technicality) will work or not. If the motion fails, then there will be a hearing next week on Bergeron’s motion to dismiss the lawsuit altogether. Xyience initially sued Bergeron, a blogger who had been very critical of Xyience (long before anyone else online was), for $25 million USD. As we detailed last week on Fight Opinion Radio, the original attorney in the Xyience/Bergeron lawsuit backed out of the case and a new attorney, Pamela Lawson, has since taken over.
Bergeron, who continues to deal with Xyience-related legal proceedings, wrote this article on Xyience’s bankruptcy proceedings. Bergeron includes a YouTube video that supposedly (according to his side of the story) explains what has happened with Xyience and what the UFC connection is.
Besides what Rich Bergeron is writing about Xyience, an intriguing mass e-mail was sent out on Tuesday night addressed to ‘Xyience shareholders.’ The author of the e-mail is Terry Cardenas, who was named in this January 22nd Las Vegas Review-Journal article:
Sattar said the company would have filed for liquidation under Chapter 7 had not it not enjoyed the continued support of the Fertittas. Sattar said Xyience continues as a key UFC sponsor. Xyience signed a $15 million sponsorship agreement with the UFC for 2007.
Sattar said the bankruptcy became necessary when the company was unable to raise $7.5 million more from shareholders.
“Those negotiations, however, were derailed by a campaign of intimidations and threats led by company founder and former CEO Mr. Pike, Terry Cardenas, Ronald Solomon and Rick Klingenberg,” he said.
“Associates of Mr. Pike and Mr. Klingenberg made threats of physical violence against Xyience management and board members and, on at least one occasion, showed up uninvited at the home of one member of management,” Sattar said in bankruptcy court filings.
Now, here is the text of the mass e-mail sent by Terry Cardenas to various MMA writers:
Fellow Stockholders,
On January 18, 2007 current Xyience Incorporated management filed for voluntary bankruptcy. There does not appear to be a contingency for stockholders in management’s bankruptcy plan. There will be a hearing on February 12, 2008 at 9AM before the United States Bankruptcy Court located at 300 Las Vegas Blvd. South, Las Vegas, NV concerning certain matters including the Court’s consideration of a post-petition financing from Zyen LLC a Fertitta limited liability corporation. It is very important that as many stockholders as possible attend the hearing.
As many of you are aware, stockholders retained the services of Attorney Daniel Newman of Broad and Cassel and on December 7, 2007 filed a lawsuit against certain offices and directors of Xyience Incorporated in State Court. For your convenience a copy of the complaint is attached. We would like to have the United States Trustee’s office recommend a shareholder’s committee to represent our rights in the bankruptcy. Please contact Mr. Landis ASAP to tell him you also would like to see a shareholder committee formed & volunteer to be on this committee.
Also, any stockholder that has any information concerning any alleged inappropriate behavior committed by management or the board of directors of Xyience Incorporated, please contact me or August Landis, the United States Trustee, using the information below.
Sincerely,
Terry Cardenas
August Landis
Assistant United States Trustee
United States Department of Justice
702-388-6600 ex. 235
Topics: Media, Zach Arnold, MMA, UFC | | Permalink | Trackback | Share This
I never liked those Xyience ads, anyway…
Total bummer. If I learned one thing from TUF, its that Xyience tastes great in a shake!
Chapter 11 and bailing on shareholders. I hate saying this but I saw this one coming.