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Levandowski just filed for bankruptcy saying he has less than $100M in assets . Does anyone know if he will only pay a percentage or is only delaying this by
by zanek 7y ago
Levandowski just filed for bankruptcy saying he has less than $100M in assets .
Does anyone know if he will only pay a percentage or is only delaying this by kicking the can down the road to another court ?
I would be highly surprised if his employer (Uber) shouldered any of the this
- whoisjuan 7y agoUber is not his employer a long time ago. They fired him precisely to stay out of this dispute.
- refurb 7y agoI don’t believe that court orders for restitution are discharge Le through bankruptcy.
- ineedasername 7y agoAnd bankruptcy doesn't actually discharge the debt if you have assets-- it just gives you breathing room and a formal legal structure to work with creditors on just what % is possible, who gets paid first, second, etc.
- tomerico 7y agoI wonder how he doesn't have more assets after he sold his company to Uber for $680 millions
- user982 7y agoTimes are tough.
- jeron 7y ago"coronavirus destroyed my portfolio"
- par 7y agoyolo'ed it all on r/wallstreetbets.
- arcticbull 7y agoNow that hits close to home -- I mean, if he'd timed the drop, he'd probably be a trillionaire by now.
- anonuser123456 7y agoCounterparty risk; something the WSB crowd is going to painfully learn in the next few months :P
- manigandham 7y agoAre you predicting banks going insolvent?
- anonuser123456 7y ago- Beer virus is about to eat Seattle and SF Bay Area. If it does... then it will eat all the US eventually. Hospitals overrun etc. People won't be working. Most disruptive event since WW2. - Supply chains run dry mid April. Huge supply shock... and will be arriving right as the beer virus starts to crush the west coast. No one has a risk model that can price those things. It's entirely possible large institutions will go insolvent in the chaos.
- yellow_lead 7y agoPeople are working in China right now, but boy is this getting off topic
- humanlion87 7y agoSeems like a pretty big assumption that those two cities would be eaten. It's definitely spreading and causing disruption, but I don't really see how it's going to grind both cities to a halt. Especially with the current amount of information we have regarding the virus. We need to know more before we can draw such conclusions. China seems to be recovering already.
- specular 7y agoVery difficult to answer this with specificity, but in general there are a number of factors that influence the amount of cash you ultimately net from a sale, including: - Cap table: what % is owed to other founders, investors, employees, etc? - The total acquisition price may include substantial legal and other fees that will lower the actual amount received by the owners or shareholders. - How much of the acquisition is financed through cash vs. equity? Equity may vest over a certain time period, and be subject to certain requirements (your sustained performance, ability to clear legal scrutiny, etc.). - Taxes. Taking all of this (and probably more) into consideration, it doesn't seem unreasonable for a founder to ultimately net <10% of the total sale price. Again, this is all wild speculation in this particular case.
- loeg 7y agoHis company existed for a seven months in 2016 before being bought by Uber. It isn't clear (to me) if there were third party investors or what the cap table was, broadly. Purportedly 90 employees at time of sale to Uber.
- ivanvanderbyl 7y agoI don't know what the CGT situation is in America, but in Australia of you own an asset (shares, property, etc) for less than 12 months before sale, capital gains tax kicks up to about 50%.
- daemin 7y agoAustralian here as well. If you own things and sell them for a capital loss you get a tax credit to use later. If you sell for a capital gain within 12 months then you will pay tax on the full amount of profit from the sale. For individuals this is just added to your income tax. If you sell for a capital gain having held the asset for over 12 months you get a 50% discount to how much profit is taxed. The tax credit for a capital loss can be used to offset a capital gain but it gets applied before any discount is applied. I am not an accountant but I have listened to one.
- garmaine 7y agoHe bought a large house in Florida?
- mfkp 7y agoThat's an asset.
- gnicholas 7y agoI think GP is referring to Florida’s generous homestead exception, which allows a debtor to keep his/her home (regardless of opulence) despite creditors’ claims.
- mfkp 7y agoAh interesting, didn't know about that. Seems like a easily exploitable loophole if so.
- toomuchtodo 7y agoIt’s is, but the benefits outweigh the moral hazard.
- jdhn 7y agoMaybe for cases like this that involve literally millions of dollars, but it really helps normal people from becoming homeless if they fall on hard times for whatever reason. Source: Family members went through bankruptcy in Florida and were able to get back on their feet much quicker because their house couldn't be seized.
- jjeaff 7y agoMost states have a homestead exemption. But most states also have a limit on the value of that homestead. Sure, you shouldn't lose your reasonable family home over debt. But that doesn't mean people like OJ Simpson should be able to keep their multi million dollar estates even though they have filed for bankruptcy.
- manigandham 7y agoMost founders make nowhere near the actual sale price for a VC-funded company, and Otto had 4 co-founders.
- rockinghigh 7y ago1) He did not own 100% of that company. 2) There were 4 cofounders and 90 employees. 3) He got paid mostly in Uber shares that vested over time and he left before they vested. https://www.cnbc.com/2017/12/14/ieee-analysis-shows-uber-paid-as-little-as-220-million-for-otto.html https://www.cnbc.com/2017/12/14/ieee-analysis-shows-uber-pai...
- tomerico 7y agoGood link. It looks like half of the purchase price was supposed to go to Anthony, but under a vesting schedule.
- throw03172019 7y agoI wonder if he missed out on his earn out because he was fired from Uber. I’m not sure how that all works legally. Anyone know?
- humanlion87 7y agoOr maybe he off-shored the rest of his money? This < $100mil are the assets that are under his name and the rest are in tax havens/under different shell companies? Not sure whether that is possible. But it seems like rich people always have multiple ways of hiding their money.
- deleted 7y ago[deleted]
- pembrook 7y agoThis is a mid-century Hollywood myth that just won't die. Even when it was still possible to do so, a tiny, tiny minority of Rich Americans were actually evading taxes by hiding money overseas. Today, it's virtually impossible to hide money overseas as an American after FATCA and various other crackdowns unless you are willing to entirely give up your US citizenship. Since the $USD is the reserve currency of the world, the US government has enormous leverage in mandating foreign banks to report on the assets of every single US citizen with money abroad. In fact, foreign banks are so scared right now, many will refuse to even deal with Americans outright. It's a huge draconian nightmare for expats--99% of whom are not rich by any means. Ironically, if you're looking to do something nefarious, the best place to do so is actually right here in the US! Numerous states allow you to create anonymous corporations and trusts.
- JohnJamesRambo 7y agoHave you ever heard of the Panama Papers?
- Mvandenbergh 7y agoThe above is the reason why there were very few Americans in those papers. They're not worth the risk.
- uuilly 7y agoThe total deal with Uber was worth about 20M upfront. The rest was milestone driven. Milestones didn’t happen bc Anthony got fired and there was a fatality that shut the program down.
- ur-whale 7y ago>I wonder how he doesn't have more assets after he sold his company to Uber for $680 millions He may have realized early that Bitcoin is unconfiscatable.
- distances 7y agoI'm not sure how serious your were with the comment, but law enforcement and customs agencies around the world hold now considerable amounts of bitcoins.
- m3kw9 7y agoProb gets some relief and payment gets restructured. You can’t just sit on 100 mill and declare bankruptcy and go Scott Free.
- speby 7y agoNo but creditors would be able to seize assets from this. Bankruptcy (most commonly Chapter 7 or Chapter 11) allow for protections of certain personal property, such as one's house. But the rest of your assets will essentially be vaporized by creditors: This is the whole point of bankruptcy protection. You don't have enough to pay so-and-so and you fear you will never have enough, or that the debt load is so great, you will never be able to pay the debt. So you file bankruptcy, give everything you DO have to creditors, and by law will be able to at least retain assets like a primary house, or at least it will buy time to stop foreclosure and repossession by a creditor (like a bank or other lender). But even then, if you still can't later on afford to get current on the home with on-going income, you would eventually lose the house, too.
- throw03172019 7y agoDidn’t he make tens of millions at Google as an employee as well? That is a lot of money to blow through (plus) assuming a nice chunk of Uber stock from Otto.
- bogomipz 7y agoHow does an employee make tens of millions? Was he a very early employee or did Google acquire a company he founded?
- smackmybishop 7y agoNeither, and it was hundreds of millions. https://www.cnbc.com/2017/04/03/waymos-uber-lawsuit-reveals-anthony-levandowskis-120m-pay.html https://www.cnbc.com/2017/04/03/waymos-uber-lawsuit-reveals-...
- bogomipz 7y agoThis is what I find so baffling - he didn't need the money and it seems like the whole Otto pursuit had a significant enough downside risk for someone who was already quite wealthy that I'm surprised he was willing to take it.
- mkl 7y ago$120 million in "Incentive pay": https://www.bizjournals.com/sanjose/news/2017/04/04/anthony-levandowski-google-uber-otto-waymo-lawsuit.html https://www.bizjournals.com/sanjose/news/2017/04/04/anthony-...
- anrmq7 7y agoHow much does a legal battle with Google cost? More than anyone can afford is my assumption.
- pmorici 7y agoMy layman's understanding is it depends on the underlying reason for the legal judgment. When fraud was involved it is supposedly harder to discharge a judgement in bankruptcy.
- sunstone 7y agoYes less than $100m. Probably closer to $4.89 and some long time ago there was a trust in Singapore bulging with much more than $4.89.
- dntbnmpls 7y ago> Levandowski just filed for bankruptcy saying he has less than $100M in assets . Does anyone know if he will only pay a percentage or is only delaying this by kicking the can down the road to another court ? If he has less than $100M in assets, then he will only pay a portion of the judgment. If he, his lawyer and his accountant were smart, he would have moved most of his assets into trust funds, iras and other judgment proof assets. Like Epstein did to protect his wealth from civil lawsuits of the rape victims. > I would be highly surprised if his employer (Uber) shouldered any of the this Uber fired him 3 years ago. If they were willing to shoulder the costs, they wouldn't have fired him.
- angry_octet 7y agoThey may be stuck with costs and penalties anyway, depending on their contract. It really has nothing to do with his ongoing employment.
- mikejb 7y agoLevandowski started a Church, around the time shit started to fall around him. I wouldn't be surprised if a lot of his money is hiding there.
- hef19898 7y agoA church? If that isn't a crooked move, I don't know what is. Kind of fits the picture, so.
- Tepix 7y agohttp://www.wayofthefuture.church/ http://www.wayofthefuture.church/
- hef19898 7y agoI saw the John Oliver show on televangelists. But TAHT is accepted as an official church? Really? Humans in support of AI working on a peaceful transition yo humans and machines ruling the world? But hey, if it helps to hide away millions of dollar, I guess why not?
- freepor 7y agoSomehow I don’t think we’ll see him in a studio apartment eating Instant Ramen.
- mikejb 7y agoIs his church bankrupt, too? I'd start there.
- Tepix 7y agoThe website (which consists of exactly one static page) is still up. Did it ever go anywhere? They used to have a signup form for a newsletter. It disappeared.