According to a notice received by GCO, LLC, the parent of ICv2.com, CrossGen has received a single offer of $500,000 for 'substantially all' of its assets after attempting to sell the company both before and after its bankruptcy filing to approximately 40 companies and individuals, including former Marvel executive Bill Jemas, 'Benefactor' Mark Cuban, Marvel, DC, Diamond, Warner Bros., Sony, Disney, Buena Vista, Classic Media, IDT, Ubisoft, etc.  The offer was from John Taddeo, formerly associated with Florida publisher Tekno Comics. 

 

The filing states. 'The sale of the Assets to the Purchaser is far from a mere continuation of the Debtors' businesses in the ordinary course, but represents a liquidation of the businesses....'  This implies that the bankruptcy will change from a reorganization (Chapter 11) to a liquidation (Chapter 7). 

 

A $500,000 sale of assets would pay off the debtor in possession financing from CrossGen founder Mark Alessi (see 'Alessi To Provide DIP Financing'), pay a tiny percentage of the debts to secured creditors, and pay unsecured creditors nothing.   

 

CrossGen asked for approval of an auction procedure whereby Taddeo's offer would be used as a 'stalking horse,' and other offers sought.  The procedure would pay Taddeo a 'break-up fee' if another bidder acquires the company.