Beware, humble readers:
Mr Foley quite interestingly uses the language "GVR never paid for the agreed upon purchase of UltraCade" when in fact he liquidated the company to receive money for Ultracade assets without fulfilling obligations to creditors. A bankruptcy sells assets to fulfill liabilities, Foley just sold off assets and screwed his creditors.
This is called, having your cake and eating it too.
Ultracade was liquidated in California through what's called in legal professional as "Assignment for Benefit of Creditors" a far less regulated form of bankruptcy which requires minimal legal oversight/approval.
Such a filing should, more often than not raise a red flag of potential fraud.
http://findarticles.com/p/articles/mi_pwwi/is_200606/ai_n16452201/
Remove distortion field and apply logic when reading Sherwood's marketing of their service:
-The Assignee is selected by the company and is not court appointed
(you get to screw your creditors b/c you pay us to maximize your return, not what creditor receives)
-The process is less formal, with few or no court hearings
-Asset sales can occur quickly, allowing for a higher price under such circumstances;
(we'll get rid of all your debts and liabilities quickly so your creditors DON"T get any money and have no time for legal recourse-- but we will sell you or your new company the assets for nothing & no judge will say it's a bad deal)
-A third party can acquire title to the assets in a purchase transaction; (strange that a third-party, not the actual creditors who Ultracade owed potentially hundreds of thousands or millions of dollars can acquire the assets, isn't it?)
http://www.shrwood.com/Assignments-Liquidations/Assignment-for-the-Benefit-of-Creditors