One man+dog derails eMachines takeover
Temporary restraining order
An "intervenor plaintiff" has thrown a legal spanner in the works of the proposed management buyout of eMachines, the ailing budget PC maker.
He's called John Hock and he's a member of a class action suit which accuses the company of supplying some PCs with defective floppy disk controllers.
The eMachines takeover does not leave enough to cover potential damages, he argues; and so he's applied for a temporary restraining order.
This stops eMachines from 'merging with EM Holdings Inc. and from using the assets of eMachines to pay or satisfy any debts or obligations of another person, including any shareholder or corporation who acquires its stock or whose stock it acquires or who is part of or merges with eMachines or who is in any way related to the transaction with EM Holdings Inc."
The order expires on December 28. Hock will be back on December 31, assuming he posts a $5,000 bond, to argue his case.
eMachines is reviewing its legal options, while the buyout vehicle, EM Holdings, is hiring lawyers to see what they can do to overturn the order.
eMachines last month agreed to sell itself to company founder Lap Shun "John" Hui, the sole owner of EM Holdings. for $161m. ®