Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 192

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 192
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 Accordingly, to liquidate their investment, Public Stockholders may be forced to sell their Public Shares or Public Warrants, potentially at a loss. Emerald may not have sufficient funds to satisfy indemnification claims of its directors and executive officers. Emerald has agreed to indemnify its officers and directors to the fullest extent permitted by law. However, Emerald’s officers and directors have agreed to waive any right, title, interest or claim of any kind in or to any monies in the Trust Account. Accordingly, any indemnification provided will be able to be satisfied by Emerald only if (i) Emerald has sufficient funds outside of the Trust Account or (ii) Emerald consummates an initial business combination. Emerald’s obligation to indemnify its officers and directors may discourage stockholders from bringing a lawsuit against its officers or directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against Emerald’s officers and directors, even though such an action, if successful, might otherwise benefit Emerald and its stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent Emerald pays the costs of settlement and damage awards against its officers and directors pursuant to these 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 -