Author Topic: Muscletech files for bankruptcy  (Read 59944 times)

Norton

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Re: Muscletech files for bankruptcy
« Reply #100 on: January 20, 2006, 04:24:38 PM »
Come back when you can back up anything you say.

I'm backing it up. Just remember, you heard it from me first.

Bluto

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Re: Muscletech files for bankruptcy
« Reply #101 on: January 20, 2006, 04:27:47 PM »
I'm backing it up. Just remember, you heard it from me first.

well i could care less either way, but surely it can't be hard to understand that without credibility or evidence pretty much anybody can make anything up "shawn ray making a comeback" "lee priest getting synthol in his forearms" "dorian yates doing some underground fighting" (oh i forgot, we have a thread about that allready...)

Z

Norton

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Re: Muscletech files for bankruptcy
« Reply #102 on: January 20, 2006, 04:32:19 PM »
well i could care less either way, but surely it can't be hard to understand that without credibility or evidence pretty much anybody can make anything up "shawn ray making a comeback" "lee priest getting synthol in his forearms" "dorian yates doing some underground fighting" (oh i forgot, we have a thread about that allready...)



You're right. You're just going to have to trust me until it makes the news I guess.

rocket

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Re: Muscletech files for bankruptcy
« Reply #103 on: January 21, 2006, 12:42:51 AM »
i have definitive proof that muscletech is not in trouble, or atleast any permanent trouble.

Klaus Doring, whom we all know to be the most synergistic time travelling bodybuilder in the world has been using muscletech products in the future, which means it still exists there.

Q.E.D


Bluto

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Re: Muscletech files for bankruptcy
« Reply #104 on: January 21, 2006, 03:25:36 AM »
i have definitive proof that muscletech is not in trouble, or atleast any permanent trouble.

Klaus Doring, whom we all know to be the most synergistic time travelling bodybuilder in the world has been using muscletech products in the future, which means it still exists there.

Q.E.D



Time travelling eh... maybe he's from a different solar system even? His physique is so outta this world.
Z

dknole

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Re: Muscletech files for bankruptcy
« Reply #105 on: January 21, 2006, 08:49:02 AM »
It is true, they filed January 20, 2006

A court hearing in the US Southern District in New York is scheduled for Jan 25 at 10am.

It is Case 06-10092 and Adversary Proceeding 06-1147

This is in the Federal litagation regarding ephedra.

The Judge is Judge Peck, if I read the documents correctly.

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Re: Muscletech files for bankruptcy
« Reply #106 on: January 21, 2006, 08:56:16 AM »

 5 pages of rumours and no proof why is this thread still going.

Mars

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Re: Muscletech files for bankruptcy
« Reply #107 on: January 21, 2006, 08:56:23 AM »
Maybe it's time they put back some dbol powder in their stuff.

dknole

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Re: Muscletech files for bankruptcy
« Reply #108 on: January 21, 2006, 09:43:21 AM »
if someone call tell me how to upload a PDF, I will show you what is in the Federal courts.

dknole

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Re: Muscletech files for bankruptcy
« Reply #109 on: January 21, 2006, 09:48:45 AM »
I meailed the PDF of the legal document from teh MuscleTech filing to Ron - I asked him to post it.

buffbodz

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Re: Muscletech files for bankruptcy
« Reply #110 on: January 21, 2006, 10:12:18 AM »
Have no proof. Told by a lawyer.

That statement speaks volumes ::)
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ilsitren

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Re: Muscletech files for bankruptcy
« Reply #111 on: January 21, 2006, 12:29:51 PM »
This appears to be true:

Debtor:   MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court:   Southern District of New York Bankruptcy Court
U.S. Judge:   James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608

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TK

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Re: Muscletech files for bankruptcy
« Reply #112 on: January 21, 2006, 03:18:56 PM »
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
In re EPHEDRA PRODUCTS LIABILITY LITIGATION
In re MUSCLETECH RESEARCH AND DEVELOPMENT INC., et al.;
Foreign Applicants in Foreign
Proceedings.

In re RSM RICHTER INC., AS FOREIGN
REPRESENTATIVE OF MUSCLETECH RESEARCH
AND DEVELOPMENT INC. AND ITS
SUBSIDIARIES,

Plaintiff,
SHARON AGUILAR, an individual; et
al.,

04 MD 1598 (JSR)
Chapter 15 Case No.
06—10092
Adversary Proceeding
No. 06—1147


Given the relation to In re Ephedra Products Liability Litigation 04 MD 1598 (JSR), the reference to the Bankruptcy Court of Chapter 15 Case No. 06—10092 and of adversary proceeding 06—1147 is hereby withdrawn, and the matters transferred to the docket of the undersigned. All previous Orders entered by Bankruptcy Judge Peck remain in place, and the hearing previously scheduled by Judge Peck for Wednesday, January 25, 2006 at 10 a.m will now go forward at the same time before this Court in courtroom 14B, 500 Pearl Street, New York, NY. A further order, specifying which aspects of these matters will be referred back to Judge Peck, will issue in due course. In the meantime, this Order shall be docketed in both the District Court and the Bankruptcy Court.
SO ORDERED.

JED S. RAKOF
Dated: New York, New York
January 20, 2006



ilsitren

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Re: Muscletech files for bankruptcy
« Reply #113 on: January 21, 2006, 03:35:30 PM »
I would guess that the District Court Judge has taken jurisdiction for continuing litligation in his courtroom until there is a decision. At that point the decision would then go to the bankruptcy court for a dertmination of discharge or review of other matters. The District Court Judge can also send the entire matter back to the bankruptcy court or for that matter some of the case, not all of it. This often happens where there is still ongoing complex litigation. It may have been a legal maneuver on the part of Muscletech to stall the litigation.

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bigdumbbell

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Re: Muscletech files for bankruptcy
« Reply #114 on: January 21, 2006, 03:54:10 PM »
I would guess that the District Court Judge has taken jurisdiction for continuing litligation in his courtroom until there is a decision. At that point the decision would then go to the bankruptcy court for a dertmination of discharge or review of other matters. The District Court Judge can also send the entire matter back to the bankruptcy court or for that matter some of the case, not all of it. This often happens where there is still ongoing complex litigation. It may have been a legal maneuver on the part of Muscletech to stall the litigation.

Ian L. Sitren
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even the negligent have rights until it's resolved

Vince G, CSN MFT

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Re: Muscletech files for bankruptcy
« Reply #115 on: January 21, 2006, 04:18:55 PM »
I'm not surprised that Muscletech filed for bankruptcy because they forsee the inevidibile overflow of lawsuits due to ephedra coming in.  By doing that, it'll shut em up
A

Dark_Matter

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Re: Muscletech files for bankruptcy
« Reply #116 on: January 21, 2006, 04:54:59 PM »
They always made shitty supps. Good riddance to bad rubish...

ilsitren

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Re: Muscletech files for bankruptcy
« Reply #117 on: January 21, 2006, 05:01:47 PM »
Despite any feelings about the supplements, a bankruptcy filing does not put them out of business.

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Adam Empire

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Re: Muscletech files for bankruptcy
« Reply #118 on: January 21, 2006, 09:34:45 PM »
I'm surprised that Insider X posted that this is not true - they are usually pretty knowledgeable of what's going on...

On the flip side, maybe a respectable company (Optimum, Twinlab, NOW, ISS, or somebody) will buy them cheap and make the products worth it...
Motherboy (the band).

timfogarty

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Re: Muscletech files for bankruptcy
« Reply #119 on: January 21, 2006, 09:40:28 PM »
On the flip side, maybe a respectable company (Optimum, Twinlab, NOW, ISS, or somebody) will buy them cheap and make the products worth it...

filing for bankruptcy protection doesn't mean the company will go out of business.   Lots of companies have done it.  Pretty much every US airline has at least once in the last 20 years.  it just gives the company protection from creditors while they reorganize.   in fact, the consumer will probably not notice anything.

Norton

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Re: Muscletech files for bankruptcy
« Reply #120 on: January 22, 2006, 06:01:15 AM »
Come back when you can back up anything you say.

I'm back.

Debtor:   MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court:   Southern District of New York Bankruptcy Court
U.S. Judge:   James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608

Norton

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Re: Muscletech files for bankruptcy
« Reply #121 on: January 22, 2006, 06:02:05 AM »
That statement speaks volumes ::)

Yeah, and so does this:

Debtor:   MuscleTech Research and Development Inc.5100 Spectrum Way, Mississauga, Ontario L4WS2, Canada
Petition Date: 2006-01-18
Case number:06-10092
Bankruptcy Court:   Southern District of New York Bankruptcy Court
U.S. Judge:   James M. Peck
http://www.chapter15.com/bin/chapter15_view_company?cid=1137663608

1Fast400

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Re: Muscletech files for bankruptcy
« Reply #122 on: January 22, 2006, 12:24:56 PM »
If the owners have half a brain on them, they have an airtight trust.  The company muscletech wouldn't own any assets.  It would be owned by a host of other companies, within a trust, who then lease it back to MT.  What people don't realize is for a judgement to be paid, all prior liens must be paid.  Soooooooooo, these companies within the trust have liens on MT cause they own all their assets.  MT never pays back those liens, so they never pay the judgement. 

This is nothing but a paper bankruptcy, it will have zero effect on how they do business. 


Norton

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Re: Muscletech files for bankruptcy
« Reply #123 on: January 22, 2006, 03:32:06 PM »
If the owners have half a brain on them, they have an airtight trust.  The company muscletech wouldn't own any assets.  It would be owned by a host of other companies, within a trust, who then lease it back to MT.  What people don't realize is for a judgement to be paid, all prior liens must be paid.  Soooooooooo, these companies within the trust have liens on MT cause they own all their assets.  MT never pays back those liens, so they never pay the judgement. 

This is nothing but a paper bankruptcy, it will have zero effect on how they do business. 



That's somewhat true, but there is a thing called related entities and preferred payments. All insider transactions will be subject to claim. A trust will work, but for bankruptcy to go through and have a plan of reorganization approved by the courts these issues must be addressed and resolved.

No such thing as a "paper bankruptcy" with a maze of related entities intertwined with personal injury lawsuits.

Insider X

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Re: Muscletech files for bankruptcy
« Reply #124 on: January 22, 2006, 04:10:38 PM »

They say that there are about 60-80 lawsuits involving Muscletech and Hydroxycut's that contain ephedra. There are also class action lawsuits from states about these issues.  They is no way that Muscletech can even afford to fight these, let alone pay any judgement, regardless of what it was. With AST Sports Science declaring bankruptcy in their Dymetadrene Extreme case, and that care going to a jury and a jury awarding the plantiff $6 million dollars, it can be reasonably assumed that Muscletech will lose a few of these cases, regardless of the proof that ephedra is the cause of anything, but just by jury sympathy. Add the the fact that each case going to a jury trail, and going through the motions, and depositions can cost upwards of $500,000 per case just in fees, and you understand what is going on.

Two year back, Iovate, or rather eight different Iovates, allegedly, were created for various aspects of the supplement company. Muscletech has no assetts at all, most likely, and the name was probably already leased to Iovate. By declaring bankruptcy, the most they will get is whatever the name is being leased for, which is probably a minimum amount (let's say $500,000 a year), which covers nothing in the scope of things.

Iovate, which owns Muscletech's name, will not be affected by this at all.

Until the laws be changed that prevent something like this, and it happens all of the time, to many companies, oh well.

AST Sports Science is running quite nicely, after avoiding all of the lawsuits and other debts. Not bad for the owners of the companies...