Whither Audio Research

[Lee]

FWIW, I agree that we will just have to wait and see. If Cora can’t pay the debt holders, Lighthouse will not go away. If he can, and I think he can, then there’s no purpose for Lighthouse.

I believe this only applies to secured creditors. Unsecured creditors may be out of luck.

 

[Another Johnson]

I agree. I do not think it is premature to celebrate though.

edit: Order was not posted until after I expressed my joy. My joy was misguided and premature.

 

[Another Johnson]

I believe this only applies to secured creditors. Unsecured creditors may be out of luck.

Very possibly true. Cora has many balls in the air here, but time will tell.

 

[Another Johnson]

When I first posted that it was closed, the new hearing on 6/20 had not yet been posted.

Neither was the order.
My joy was premature.

 

[Rt66indierock]

There is a hearing scheduled for 6/20 now, but the case is marked closed​

​

Case Information​

Case Number: 27-CV-23-43992 7 dash C V dash 2 3 dash 4 3 9 9
Case Title:In re: Assignment for Bennefit of Lighthouse Management Group, IncIn re: Assignment for Bennefit of Lighthouse Management Group, Inc
Case Type: Civil Other/Misc.Civil Other Miscellaneous
Date Filed:04/04/2023April 4 2023
Case Location:Hennepin County, Hennepin Civil
Judicial Officer: Burke, Susan N.
Case Status:Closed

Hell is apparently freezing over; I must agree with Lee. The judge approved the Lighthouse Management Group as general receiver.

I am saddened by your last couple of posts. All you needed to do was look up the order and read it to know this.

 

[microstrip]

It will have the same power tube count as the 250, not the 160.

Yes, but is hard to guess the exact number of power tubes from this statement - the REF250 used eight KT120 each, but two of them were used as drivers. But as far as we see in the picture is looks it uses six KT150 as power tubes.

Edit - just confirmed at the ARC site that six power tubes are used in each REF320. Probably an improved and beefed REF250.

(6) KT150 Power Output
(2) KT150 Driver
(1) 6H30 Input
(1) 6550 and (1) 6H30 Power Supply

 

[Another Johnson]

Hell is apparently freezing over; I must agree with Lee. The judge approved the Lighthouse Management Group as general receiver.

I am saddened by your last couple of posts. All you needed to do was look up the order and read it to know this.

When I posted, the only thing that had changed was that the case was marked closed.
Later in the morning the hearing on 6/20 was added.
Then the Order was added.

I’ve now read it.

The Order affirms that Lighthouse is in charge. Every aspect. So there is no deal with anyone unless and until Lighthouse says there’s a deal. All the powers of the state of Minnesota are at Lighthouse’s disposal.

There is no way to cut through this without a crystal ball. I don’t have one.

I’m going to stop following it and wait until the resolution is published in a paper edition of TAS or Stereophile.

I apologize for my irrational exuberance. I wanted “case closed “ to mean just that. But the legal system is whimsical.

 

[davidavdavid]

While on the matter of Minnesota Court Case Records, there is this one that remains open which may OR may not have any bearing on a forthcoming acquisition, regardless it should be shared:

And yes, it is pretty much sit and wait until the ink is dry on any new events.

Case Number: 27-CV-23-6500 (when searching the public access records site the dashes/hyphens can be removed)
Case Title: Minnesota Bank & Trust, a division of HTLF Bank vs AUDIO RESEARCH CORPORATION, Trenton M Suggs Minnesota Bank & Trust, a division of HTLF Bank versus AUDIO RESEARCH CORPORATION, Trenton M Suggs
Case Type: Confession of Judgment

 

[Rt66indierock]

When I posted, the only thing that had changed was that the case was marked closed.
Later in the morning the hearing on 6/20 was added.
Then the Order was added.

I’ve now read it.

The Order affirms that Lighthouse is in charge. Every aspect. So there is no deal with anyone unless and until Lighthouse says there’s a deal. All the powers of the state of Minnesota are at Lighthouse’s disposal.

There is no way to cut through this without a crystal ball. I don’t have one.

I’m going to stop following it and wait until the resolution is published in a paper edition of TAS or Stereophile.

I apologize for my irrational exuberance. I wanted “case closed “ to mean just that. But the legal system is whimsical.

The only thing you must apologize for is for me having to agree with Lee. He is on the wrong side of many audio issues. And I prefer to be on the right side of them.

You might want to read my dear Jim posts before you place any value on what is in Stereophile about financial matters. TAS is a lost cause on this kind of stuff too.

 

[Lee]

When I posted, the only thing that had changed was that the case was marked closed.
Later in the morning the hearing on 6/20 was added.
Then the Order was added.

I’ve now read it.

The Order affirms that Lighthouse is in charge. Every aspect. So there is no deal with anyone unless and until Lighthouse says there’s a deal. All the powers of the state of Minnesota are at Lighthouse’s disposal.

There is no way to cut through this without a crystal ball. I don’t have one.

I’m going to stop following it and wait until the resolution is published in a paper edition of TAS or Stereophile.

I apologize for my irrational exuberance. I wanted “case closed “ to mean just that. But the legal system is whimsical.

I am sure Val will issue a statement when all is done.

 

[Big Dog RJ]

Darn it... I've already finished the bottle!
Hiccups...who dat?

 

[Another Johnson]

Darn it... I've already finished the bottle!
Hiccups...who dat?

As late as it is right now in Oz, it’s the perfect time to sleep it off. Sweet dreams.

 

[Abbinormal]

Regarding tube costs, to put it in perspective, consider smoking one decent cigar per day for a year. The annual cost would be in the $2k to $4k range. Consider drinking three bottles of decent wine per week for a year. The annual cost would be in the $2k to $4k range. So in my value system, $2k per year for tubes is well within the manageable range for someone who has the wherewithal to enjoy a modest 6 figure tube based audio system. Obviously we make our own choices, and they're not going to all be the same. YMMV has never been more true.

When you add in things like phono cartridges and vinyl or other hard media purchases, such costs can easily approach $2k per year or more. Streaming with Qobuz, Tidal, Amazon and Roon subscriptions are typically under $1k per year unless you buy a lot of down loads. Deep pockets help in this hobby, but as someone noted above, it is not hard to get "conditioned" to these expenses. I am more concerned about the scarcity of tubes, especially those made in the American owned Russian factory. I hope that this issue can be resolved soon. Tubes are historically very expensive right now, and some appear to be unavailable at any price. For the long term health of tube focused companies like ARC and CJ, this will have to change.

Does that mean I have to give up my Padrons or my Lafite (yes, I am a cigar and wine snob.)

 

[Another Johnson]

Does that mean I have to give up my Padrons or my Lafite (yes, I am a cigar and wine snob.)

No. It means that you can support the tube maintenance on the REF750SE.

 

[Abbinormal]

...I find HOA logic baffling. And I'm on the board. Fascinating study.

I personally think HOA's are the spawn of Satan and I absolutely hate them with a bloody passion. Oh yeah, I am the President of our HOA because they can't find anyone willing, ie stupid enough, to take the job.

 

[Another Johnson]

I personally think HOA's are the spawn of Satan and I absolutely hate them with a bloody passion. Oh yeah, I am the President of our HOA because they can't find anyone willing, ie stupid enough, to take the job.

I was once approached by the representative of an “important guy” to serve on a high level board.
He said “He really wants you … no one else will do.”
Although I eventually agreed to serve, my initial response was “I think what you really mean is that “no one else will do … it”

 

[Gregadd]

THE AMEERICAN GOVERNMENT HAS BECOME ONE BIG HOA.

 

[Nathanu]

The latest development is that Minnesota Bank & Trust has given notice of a hearing for June 7 on its motion for entry of judgment against Trent Suggs under his Confession of Judgment. In exchange for the bank previously having agreed to forbear from immediately foreclosing on the assets of Audio Research, Mr. Suggs (who is a personal guarantor) had agreed to a Confession of Judgment. We know from prior filings that Audio Research failed to raise equity capital or sell the company before the deadline imposed under the forbearance agreement. Based on the closing of the receivership case, the fact that the bank is not seeking entry of a judgment against Audio Research, and the reports of a sale of assets of Audio Research (which could not have occurred without the bank releasing its security interest on those assets), it would appear (this is speculation) that the following has occurred:

1. The bank agreed to release its security interest in the assets to facilitate the sale of the assets.
2. The proceeds from the sale were insufficient to cover the debt owing to the bank.
3. The bank is seeking a judgment for the deficiency from Trent Suggs.

I tried to confirm the release of the security interest at https://www.sos.state.mn.us/business-liens/ucc-cns-tax-liens-help/how-to-search-ucc-lien-filings/; however, I do not have the file number for the UCC-1 Financing Statement. Minnesota charges a fee for UCC searches by name and, well, this case is interesting but not that interesting.

 

[Pacha]

Would someone explain to a non law person what the above means in simple English please?

 

[DonH50]

Would someone explain to a non law person what the above means in simple English please?

Not a lawyer, but based upon the three points @Nathanu made it looks like ARC owed the bank money, the bank agreed to the sale assuming it would cover the money owed to the bank, but the sale did not in fact generate enough to cover the debt to the bank, so now the bank is suing the new owner (Trent Suggs) for the money owed to it.