| From Jeff Winston, who used to work at DEC, and is now at Kurz.
...
From: "winston%lsrhs.UUCP@xait.xerox.com" 21-APR-1990 20:00:39.72
Subj: KURZWEIL announcement - F Y I
Greetings. Just want to say thanks to those of you who expressed
concern about the situation at Kurzweil. I'm happy to pass on that last
Friday, Kurzweil Music announced that its assets are being acquired by
Young Chang, the 2nd largest manufacturer of acoustic pianos (and a
maker of electric and acoustic guitars, including Martin guitars). They
are a large ($160M sales) high-quality, Korean outfit, and a good fit
for Kurzweil. You see, last fall we put ourselves up for sale in order
to gain a partner with vertically-integrated manufacturing capability,
as paying outside firms to build our products was making them cost too
much. Now, with in-house manufacturing, our products will compete
better on cost.
Unfortunately, the time it took to get the deal did a job on Kurzweil's
financial situation. That's why we had to mention bankruptcy as an
option in our end-of-4th-quarter press release issued at the end of
March. The Globe picked up the release, and printed the section about
bankruptcy being an option, but totally ignored the section that said we
were working on being acquired and expected to announce a deal soon.
Kurzweil did also announce on Friday that it is filing for chapter 11,
but this is a non-issue, related to the legal details of the sale.
As for me, I've been relatively isolated from all of this, haven't
missed a paycheck, and continue to go along working on my chips. So,
again, thanks for your interest and concern, and look for some REALLY
impressive new products from Kurzweil/Young Chang next year.
/j
(PS: To any DECies who read COMMUSIC - feel free to post this, and tell
them that Rick and I are doing fine, that existing Kurzweil products
will continue to be well supported, that it appears that many recent
products will become available again sometime soon, and to look for some
great new stuff from us next year).
|
| Recently received the "Disclosure Statement" relative to Kurzweil Music
System's Reorganization Plan that goes along with their Chapter 11
proceedings. For what it's worth, here are a few quotes. The Asset
Purchase Agreement is an agreement with Young Chang Akki Co., Ltd.
This Plan of Reorganization is scheduled to be heard in court sometime
later this fall (i.e., it's not a given that it will be accepted by the
creditors, the equity holders, and the court).
It sounds like any new Kurzweil products will be those transferred to
Young Chang and manufactured/marketed/sold by Young Chang. For what
it's worth.
- John -
Snippets after the formfeed...
"...Under the Asset Purchase Agreement, Young Chang purchased (i) all
of KMS' technology, intellectual property and proprietary information,
including the right to manufacture and market musical instruments using
the Kurzweil technology and using the "Kurzweil" name, (ii) certain of
KMS' contract rights, including distribution rights..., and (iii) spare
parts inventory..."
"... Young Chang has undertaken to maintain service facilities for the
repair of products shipped by KMS prior to closing..."
"At the time of the execution of the Asset Purchase Agreement, Raymond
C. Kurzweil... entered into a Non-Competition and Trademark Usage
Agreement pursuant to which he agreed not to compete, directly or
indirectly, with Young Chang in the musical instrument business for 5
years. Mr. Kurzweil also agreed that he would not use the "Kurzweil"
name in connection with musical instrument products or services..."
"The parties contemplate that Mr. Kurzweil will continue as an employee
of the Debtor, which will be known as KM Systems, Inc. following
confirmation. Mr. Kurzweil will remain as the sole director and sole
officer of KM Systems, Inc. to maintain the corporate existence of the
company, supervise and provide necessary information in connection with
the resolution of disputed claims and interests, and insure Young
Chang's faithful performance of the Asset Purchase Agreement and
payment of all royalties due thereunder..."
"...After the requisite approval of the plan by creditors and equity
security holders and confirmation by the Court, KMS will change its
name to KM Systems, Inc. and will be a non-operating corporation which
will remain in existence for the purpose of monitoring, collecting, and
disbursing royalties paid by Young Chang..."
"...Mr. Kurzweil, along with another employee, will remain employees of
KMS for the purpose of supervising collection of royalties..."
|