Feeds

One man+dog derails eMachines takeover

Temporary restraining order

  • alert
  • submit to reddit

Seven Steps to Software Security

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. ®

Related story

Emachines sells itself to founder

Boost IT visibility and business value

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
Price cuts, new features coming for Office 365 small biz customers
New plans for companies with up to 300 staff to launch in fall
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.