Audio Research filing

[AnotherJohnson]

I’ll try to post a link to a video interview with Dave Gordon.

https://whatsbestforum.com/threads/whit ... ost-879245

[admin]

I think that about settles it. ARC is safe.

[AnotherJohnson]

I think they are actually in a legal battle to extricate themselves from the Receivership.

They need a good lawyer.

But every thing is now in place for a happy ending.

[AnotherJohnson]

The next hearing is set for June 7.

Maybe more will be known by then.

[AnotherJohnson]

THE CASE WAS CLOSED YESTERDAY.

THE OFFICIAL CELEBRATION CAN BEGIN.

I hope we have similar news on the tube availability issue.

RJ mentioned his friend from Singapore who was turned away as a possible buyer. My favorite buyer candidate was the folks who are making tubes at the American owned factory in Russia. I had it on good authority that they’d visited Maple Grove during the inspection period. I was hopeful that if they bought ARC, tube production could move to Maple Grove. The ARC facility is far larger than necessary to support the ARC product line.

In any event, it was not to be.

Valerio Cora looks like a sharp guy with deep pockets and an even deeper love of the brand. I like that he will keep Acora speakers as a separate entity.

FWIW, Acora speakers use solid granite as their cabinet material. Rockport uses cement. Wilson used engineered polymers. All three are avoiding wood. But there are many great wood speakers too. And, of course the electrostatic speakers avoid it except for their frames, or attendant woofer units.

[AnotherJohnson]

Not the good news it appeared to be.

More materials have appeared today.

A hearing has been set for 6/20.

An extension has been given to 8/1.

Things may still be up in the air.

Although the case file was marked closed this morning when I posted, the additional case materials have been added during the day today.

The 8/1 extension gives time for the pins to drop. I jumped the gun when it took so long after the 5/17 hearing, assuming that “case closed” meant it was over.

So … win or lose we may booze, as RJ has said …

But I’m going to wait for the win.

[Big Dog RJ]

Correct! Win or lose, we booze!

Not to worry AJ matey, things will turn out just fine. These are a few pending issues that require some ironing out...

Cheers, RJ

[admin]

I know nothing is set in stone but I have a good feeling about this. ARC is going to live on and at the end of the day perhaps be in even better hands. Sounds like they are just going to iron out the details.

[AnotherJohnson]

The court approved the sale to Acora Acoustics and its assigns.

https://www.strata-gee.com/audio-resear ... rporation/

The name is changed to AR Tube Audio Corporation. Not sure why. Not sure who owned the name, but it was an asset with value.

Val Cora says that the intention is that it will remain in Maple Grove.

This has been a distraction. I hope things can get back to normal, but it will depend on Cora’s vision and his pocket depth.

[admin]

Glad to see that the process of transition seems to have been finalized. Just to be clear, they are not rebranding. The gear is still going to say Audio Research, correct?

[AnotherJohnson]

We’ll have to wait and see.

Also, if ARC is gone, are warranties going to be honored?

The unsecured creditors are being hung out to dry. They will get 5% to 15% of what they’re owed.

WZJ sold his original company, Electronics Industries, in the late ‘60s. He bought his intellectual property back by assuming the debt that the buyer had acquired (about $80k) and he renamed it to ARC. Bill paid back every creditor in full.

We’ll wait and see what Val Cora does. I was surprised that the receiver was willing to cut the unsecured debt holders loose.

There’s a lot more in the court documents. ARC is lucky to be alive.

[AnotherJohnson]

I think there will be a Harvard Business School Case Study of this because there’s so much data on the history to date. WZJ started Electronics Industries when he returned from military service after WWII. It was a mature and thriving business, including a lot of custom electronics builds and mods of Dynaco kit amps, when he sold it around 1967. The buyer ran it straight into the ground. In the two years after he sold it, Bill took flying lessons and became a pilot (using his GI Bill) tuitions benefits.