Did Coleco ever honor their "ADAM" scholarships?

[chargerrich]

While rummaging through decades old boxes in my grandparents attic last weekend I discovered a complete Coleco ADAM and a near pristine certificate (complete with name and social security number) entitling my cousin to $500 towards his college scholarship circa 1985!

Needless to say he never collected (but did go to college)

But given how the market crashed and Coleco went under, I am intrigued to find out what - if anything - came of all of those scholarships. I suspect most of those received were for young kids in 1985 which would have left them dormat for a decade or more.

Did they (or someone) honor these?

Were they sued?

I have searched but my “google-fu” has failed me.

Any knowledge on this would be interesting to hear!

[Czarcasm]

From this site:

I purchased an Adam computer many years ago, and with it came a certificate for a $500.00 scholarship for my child. I submitted the certificate, transcript from TCU, and anything else I was supposed to, but I received it back the other day. Can you let me know where to send this information to claim the $125 the certificate has accrued?

• Coleco Industries, Inc. ran a promotion about 14 years ago before going bankrupt that included the scholarship. But after bankruptcy the company settled all debts under bankruptcy laws and went out of business about 12 years ago. The company IS out of business permanently. There is no one to talk to.
  Some companies, like Hasbro, bought the rights to continue the manufacture of Cabbage Patch dolls and other things. The word coleco can be short for a lot of things. Originally it was Conneticut Leather Company as the company you did business with, or otherwise known as Coleco Industries, Inc. Other companies, e.g., Cole Company, have used coleco to convey their name. There are hundreds of coleco@whatever.com addresses and it means nothing as far as any connection with the business activities of the original corporation that went bankrupt. And, as the laws of bankruptcy govern, only an announcement in the papers was necessary to bring notice to all concerned. And there were articles carried in the business sections of every major newspaper in addition to the announcements. But, besides all that, the worth of that certificate would have only been fractions of a cent on the dollar. Coleco Industries, inc, owed millions of dollars and was forced to sell everything for practically anything they could get to satisfy the debts (not in whole, but to the extent they had assets that could be turned into cash) and pay something on their debts. I don’t know anyone who received anything for the certificate, including myself and others in my family.

[Loopus]

To expand on that a little, holders of those scholarship certificates were creditors of Coleco. When Coleco went bankrupt, the scholarship certificate holders, like many if not most creditors in a bankruptcy proceeding, were left with nothing.

As holders of unsecured non-priority debt, scholarship certificate holders were in no position to get anything - bondholders, employees, other lenders, and many others were way in front of them.

Once the bankruptcy proceedings were finished, Coleco’s (former) creditors no longer had any recourse.