Ostensibly, it is in what you left out of your question? If you can buy the assets, specifically, you can not buy the liabilities.
Obviously, getting some people off of obligation lists is one of them. There could be others?
Obviously, getting some people off of obligation lists is one of them. There could be others?
In this case though with a new name and product that won't be an issue.
[1] someone else will remember the name of that company - it escapes me
https://apnews.com/article/publishers-clearing-house-bankrup...
The company that I’ve forgotten was selling some kind of software offering.
There are non-financial liabilities, as well.
https://kddk.com/2015/07/30/successor-liability-in-the-purch...
Other impacts can include future potential NewCo lenders being pretty leery about getting involved with the same people. It's also not a great look for the founder(s)/senior execs in terms of future resume - unless there are extenuating circumstances which justify doing it. An example can be something like a fundamental disagreement between co-founders who are major shareholders. In that scenario this may not be to shaft debtors but rather for the majority co-founders, investors and key employees to 'dump' a minority non-cooperating co-founder who's no longer involved with the company, has a "change of control" veto and won't sell their shares but can't stop an asset sale. Basically the board approves the sale and the key execs/employees all vote with their feet. The original OldCo shareholders still own those shares, they're just worthless without the people, IP, assets, etc. In such a case, the non-cooperating shareholder might have grounds to sue but one defense can be a solid paper trail showing the company treated them fairly, offered to buy out their shares at fair market value and was basically forced into this as the only alternative.