Gencon Sued by LucasFilm (over Star Wars Celebration Make-a-Wish auction)

[Thunderfoot]

As for the effect on GenCon '08 - There would be none unless LucasFilms requests and is granted an immediate decision on the case. (Unlikely due to Chp 11)

More than likely, the company will use the funds to stabilize the ship, so to speak. Notice that currently the only event that GenCon is hosting is GenCon. (Factual - per website at the moment - subject to change)
No GenCon Australia, no GenCon Europe; evidentially, these events are the real financial culprit, as neither event was nearly as large as GenCon and both cost more in total dollars to support (hearsay - not confirmed.)
GenCon is one of the largest total dollar makers for Indy and likely will receive the city's support in order to continue their economic stimulus which is driving the overhaul of their convention district. (we spend a lot of money every year directly to their business district unlike race fans that spend it near the track)

I expect that with only one event per year, that this will cut overhead, make a slight profit which will go to removing debt cast by Chp 11 and will eventually put the company back on track.

Possible outcomes -
a) GenCon continues to thrive (it is by the way) and helps bail the company out.
b) GenCon meets margins and keeps the company afloat through this so that quality is stagnant for a few years until this is resolved.
c) They decide that they can bail out through a sell out. This would mean the company changes hands - not likely since the company drags all its baggage with it.
d) The company goes belly up and GenCon is no more.

A & b are much more likely than the alternatives, all though c could be a possibility if WotC wanted the property rights back, which would turn GenCon into a very large WotC market show (and ultimately kill it). D is the most unlikely. If GenCon LLC decides to remained focused on what works and not to expand into other markets, they can turn this around in a matter of a few years. The problem for the company will then come in the form on yearly income centered in August with little opportunity for sustained income. (one reason the other cons were cyclical...) If GC, LLC cannot meet costs with a single payout (August), the company may be doomed regardless.
Really, what may keep them afloat is either shoring up investments (using funds to generate profits in money markets (not money market accounts)) or to take the company public by issuing bonds and stocks, hoping the liquidity of funds can save their bacon (the gamble being that there has to be more than passing interest in their stock to ensure long term financial gain.)

So we've covered legal (thanks all you law making types) and business...any other aspects we are missing? PR folks, human resources, land and development?

 

[Hooly]

No GenCon Australia, no GenCon Europe; evidentially, these events are the real financial culprit, as neither event was nearly as large as GenCon and both cost more in total dollars to support (hearsay - not confirmed.)

I'd just like to tune in to correct this point only.

The listing of all Gen Con events (both Indy and International events) can be found here.

It should also be pointed out that for all of the international Gen Con events (i.e. UK, Paris, and Australia) that we are companies in our own right and have licensed the Gen Con brand name from Gen Con LLC.

As examples:

Gen Con Australia = Eventions Creative Event Management Pty Ltd
Gen Con UK = Horseman Events Ltd
Gen Con Paris = Asmodée Editions

As mentioned in the Press Release, none of the international events have been affected and will occur as normal (or in our case, for the first time).

 

[Justin D. Jacobson]

There has been a little misinformation upthread. To clarify, Chapter 11 bankruptcy is for reorganization. There is no "discharge" as there is under a Cahpter 7 bankruptcy. As with any bankruptcy, there is an automatic stay. Indeed, that is the primary function of filing a Chapter 11 bankruptcy, to prevent creditors from moving in on a company while they are righting the ship. It would be difficult if not impossible for Lucas to muck things up, such as getting relief from the stay to proceed with the lawsuit. Again, that's the whole point of Chapter 11.

FWIW, I am heading off to GC this year and have no qualms or worries about doing so.

[I am a lawyer.]

 

[wingsandsword]

So, from the looks of things, they filed Chapter 11 to buy time to pay the money to Make-a-Wish if they don't have the liquid assets to do so right now, then settle the suit with Lucasfilm.

As long as Gen Con Indy stays profitable, it seems like a good plan.

 

[wingsandsword]

I've seen many defendants make an assignment in bankruptcy thinking that the pain is all over. Then they find out the creditors are not of the same view - at all. It's rare though.

Yeah, I've seen that happen. A few years ago I had some relatives that declared bankruptcy, and it was going well. . .except one creditor that was out to make trouble. It was a relative that had loaned them some money and was taking it very personally that they weren't able to repay it and were filing bankruptcy, so she did everything in her power to make trouble and ended up turning what would have been a very routine proceeding into a very time consuming and troublesome affair. In the end, the debt was discharged and she didn't get a dime (and almost certainly spent significantly more on fighting the bankruptcy than she was actually owed), but she did it all out of spite.

So yeah, it can happen in a bankruptcy, but since this looks to be between two companies and a charity I doubt that will happen (unless as said, George Lucas for some reason takes it as a personal offense).