Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 191

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 191
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 indemnification provisions. If, after Emerald distributes the proceeds in the Trust Account to the Public Stockholders, it files a bankruptcy petition or an involuntary bankruptcy petition is filed against Emerald that is not dismissed, a bankruptcy court may seek to recover such proceeds, and Emerald and the Emerald Board may be exposed to claims of punitive damages. If, after Emerald distributes the proceeds in the Trust Account to its stockholders, it files a bankruptcy petition or an involuntary bankruptcy petition is filed against Emerald that is not dismissed, any distributions received by Emerald’s stockholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy court could seek to recover all amounts received by Emerald’s stockholders. In addition, the Emerald Board may be viewed as having breached its fiduciary duty to its creditors and/or having acted in bad faith, thereby exposing itself and Emerald to claims of punitive damages, by paying Emerald’s stockholders from the Trust Account prior to addressing the claims of creditors. If, before distributing the proceeds in the Trust Account to the Public Stockholders, Emerald files a bankruptcy petition or an involuntary bankruptcy petition is filed against Emerald that is not dismissed, the claims of creditors in such proceeding may have priority over the claims of Emerald’s stockholders and the per -shareamount that would otherwise be received by Emerald’s stockholders in connection with Emerald’s liquidation may be reduced. If, before distributing the proceeds in the Trust Account to the Public Stockholders, Emerald files a bankruptcy petition or an involuntary bankruptcy petition is filed against Emerald that is not dismissed, the proceeds held in the Trust Account could be subject to applicable bankruptcy law, and may be included in Emerald’s bankruptcy estate and subject to the claims of third parties with priority over the claims of Emerald’s stockholders. To the extent any bankruptcy claims deplete the Trust Account, the per -shareamount that would otherwise have been received by Emerald’s stockholders in connection with Emerald’s liquidation would be reduced. The Sponsor and Emerald’s officers and directors have potential conflicts of interest in recommending that stockholders vote in favor of approval of the Business Combination Proposal and approval of the other proposals described in this proxy statement/prospectus. 103 When considering the Emerald Board’s recommendation that Emerald’s stockholders vote in favor of the approval of the Business Combination Proposal, Emerald’s stockholders should be aware that Sponsor and certain of Emerald’s executive officers and directors have interests in the Business Combination that may be different from or in