In an acquisition, the acquirer can purchase assets and liabilities or simply the assets.  Sounds like ICPA bought the assets.  How this deal was structured would be dependent upon the negotiations and terms.  None of us have access to that.

If it were an asset purchase, PNCH would not be liable for any debts incurred prior to the close.

Do we all understand what we are discussing?  Do we all know the circumstances and terms?

SS said there are two contracts - JC's employment contract and the acquisition of Punch TV assets.  I assume the attorneys are working through both.