When companies liquidate, their health insurance agreeements typically end. COBRA insurance, which the former employees are required to pay for-but employers are required to provide-typically lasts for 18 months. So, in general, Telltale would need to have consulted with their creditors and had them agree to this course of action before Telltale undertook it-if they are getting good counsel on this."Īdditionally, a former employee tells GameDaily that post-employment health insurance-called COBRA-mandated by law will end for all former eligible Telltale staff on November 30, 2018. The difficulty is that the creditors are not limited in the same way they are when a company formally declares bankruptcy, and further such an assignment-like a bankruptcy-will typically trigger a default under the company’s commercial contracts.
"Because of that you can think of them in a similar manner to arbitration-rather than trial-as a way for the parties to streamline the process. "As you can probably tell, Assignment for the benefit of creditors" (ABCs) in California are not a court-based process," says attorney Richard Heog of Hoeg Law. Creditors were likely been looped in prior to completing the arrangement with Sherwood Partners. "All that means is that they were able to find someone to give them enough money for assets to pay any creditors or they had the money on hand."Īssignment takes a different path than bankruptcy. " A company can go out of business without going bankrupt," says attorney and Odin Law & Media founder Brandon Huffman. It’s a whole new world.”Īssignment is a different mechanism for closing a company than bankruptcy. “It’s just that someone doesn’t make it to the finish line,” he says. During the call, he confirmed that Sherwood will be handling Telltale’s liquidation. GameDaily spoke on the phone with Sherwood Partners co-founder Martin Pichinson. Sherwood has initiated contact with anyone who might have a claim on Telltale's assets. The writing has been on the wall for some time, but a company by the name of Sherwood Partners is expected to handle the process of winding Telltale Games down completely. Telltale Games is going through assignment proceedings, a process similar to bankruptcy, but designed to move quickly and settle the company's affairs. The story is ending, and the process to close up shop began in early October.
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