Ignoring fierce opposition from the board of the company (CI No 1,371), general partnership Berg & Berg Industrial Developers has filed details of its plans to eliminate the holdings of all other shareholders in bankrupt local area network specialist Corvus Systems Inc and take the firm over. Carl Berg, a general partner of Berg & Berg and Corvus’ largest single shareholder, is also the company’s only known secured creditor. In his reorganisation plan, he proposes to subordinate his rights to the company’s remaining $750,000 cash, which would be used to pay unsecured creditors 20 cents on the dollar to a maximum payout of $700,000. A hearing on the proposals is set for April 11.
