General Assignment Date: May 24, 2019
Claim Bar Date: October 28, 2019
In the matter of
LEAP MOTION, INC.
c/o LMI Liquidating Co. LLC
7 West 41stAve - #523
San Mateo, CA 94403
TO: ALL CREDITORS OF LEAP MOTION, INC. AND OTHER PARTIES IN INTEREST:
PLEASE TAKE NOTICE OF THE FOLLOWING:
On May 24, 2019, Leap Motion, Inc., a Delaware corporation (the “Company”), as Assignor made a General Assignment for the Benefit of Creditors, (the “General Assignment”) to LMI Liquidating Co., LLC (the “Assignee”), as the Assignee pursuant to California law. Pursuant to the General Assignment, the Company transferred ownership of its rights in its tangible and intangible assets (collectively, the “Assets”) to the Assignee for liquidation. The Assignee shall liquidate the Assets, wind down the Company and distribute the net liquidation proceeds to the Company’s creditors pursuant to the priorities set forth under California law.
A General Assignment is a common law means of concluding the affairs of an insolvent debtor as an alternative to the filing of a Chapter 7 bankruptcy case. General Assignments have been used extensively in California for in excess of 50 years. Experience has demonstrated that the recovery for assets is usually significantly greater in an assignment and administrative expenses tend to be lower when compared to the average bankruptcy liquidation.
At the time of its General Assignment, the Company informed the Assignee that due to a lack of funding and capital, the Company would be forced to cease operations in the near term. The Company’s directors and stockholders elected to conduct an orderly wind-down of the business affairs and to execute a sale and/or liquidation of the Company’s Assets by means of a General Assignment.
Due to its financial condition, during the year and a half before the General Assignment, the Company evaluated and explored its options to maintain its operations and/or to maximize value for its creditor and shareholder constituents, including engaging in an extensive and comprehensive marketing process to find a buyer of its assets. Based on this marketing process, the Company identified a global strategic buyer as the highest and best bidder for the Company’s assets. Shortly after the General Assignment was executed, substantially all of the Company’s assets were sold to this strategic buyer, and proceeds received from the transaction were used to pay down a portion of the debt owed the Company’s senior secured lender.
Based on the information that has been provided to us by the Company, IT IS HIGHLY UNLIKELY THAT YOU WILL RECEIVE ANY ADDITIONAL FUNDS FROM THE COMPANY OR ITS ASSIGNMENT ESTATE.
PLEASE TAKE FURTHER NOTICE that all entities asserting any claim against Leap Motion, Inc. must submit a proof of claim, proper supporting documentation and completed IRS Form W-9 to the addressee listed below no later than October 28, 2019. Claims should be submitted online using this Proof of Claim link or mailed to the Assignee at the following address:
LMI LIQUIDATING CO., LLC
c/o Arch & Beam Global, LLC
7 West 41st Avenue - #523
San Mateo, CA 94403
Phone: (415) 252-2900 x314
Electronic mail is the preferred method to contact the Assignee. If you would like to receive confirmation that your proof of claim has been received by the Assignee, please be sure to include your email address for the Assignee to send you a confirmation.
Forms can be downloaded for printing by visiting the LMI Forms Download page.
PLEASE TAKE FURTHER NOTICE that any claimant who fails to timely submit a proof of claim in accordance with the instructions set forth above shall be barred from sharing in the distribution of proceeds of the liquidation of the Assets of Leap Motion, Inc., if any, and shall not receive any payment from the Assignee.
LMI Liquidating Co., LLC