Due to the rejected merger of Okada Manila, 26 Capital will undergo liquidation.

Prasanth3

"Special Purpose Acquisition Company (SPAC) 26 Capital Acquisition Corp is being swiftly liquidated due to the failure to complete its merger with the operating entity of Okada Manila.

A recent ruling by a U.S. court, stemming from legal disputes between the parties, prevented the proposed SPAC merger from proceeding. Failing to meet the merger deadline led to the liquidation, with 26 Capital forfeiting its final month's payment of $27,500 and extending the merger deadline to October 20, 2023. The company plans to seek compensation from Okada Manila through legal action.

As part of the liquidation, 26 Capital will redeem all outstanding common shares issued to the public shareholders at a redemption price of $10.95 per share on September 25, 2023. Universal Entertainment Corp, the parent company of Okada Manila, anticipates that 26 Capital will appeal to the Delaware court to block the merger. The court criticized 26 Capital's efforts to push through the merger.

The legal dispute began in February 2023 when Jason Ader, the founder of 26 Capital, filed a lawsuit against the Okada Manila entity, alleging breaches of the merger agreement. On June 30, 2023, Okada Manila formally terminated the merger agreement, citing unlawful conduct and fraud on the part of 26 Capital."

divya939393

Having a merger rejected can indeed be a frustrating and challenging situation.

Yamini003

Liquidating mergers at the drop of a hat, are the big players running out of money?

Niti998

It seems that there are individuals or parties with a genuine interest in pushing for bankruptcy and liquidation in this case.

Jatin255

I don’t understand this thing