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Cam, your assumption is correct. If it is an asset purchase, the new owners did not take responsibility for any of the previous corporation's obligations. They simply bought the hard assets and intellectual property. The old corporation will continue to be liable for warranty issues and the like. If the previous owners/corporation have not, or do not have the ability to fund future obligations they may bankrupt the original corporation. In a buy-sell however anything can be written into it. Although unlikely, the new owners may agree to accept specific obligations (warranty) of the previous corporation. I hope this is the case.
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