Tuesday, April 28, 2009

Central Park Media Files for Chapter 7 Bankruptcy - (Update)

Anime News Network reports that Central Park Media has filed for Chapter 7 Bankruptcy "and has closed its doors as of Monday. " The company owes US$1.2 million to creditors and has not released a new title for 12 months. ANN writes, "under Chapter 7 of the Bankruptcy Code in the United States will face liquidation". Chapter 11 and 13 bankruptcies alow a company to restructure and continue to operate. ANN uses The Crain's New York Business website as a source. ANN states that CPM's representives did not respond to their request for a comment.

Update: April 29, 2009

ICv2 reports that Central Park Media filed for Chapter 7 Bankruptcy in bankruptcy court on Friday, April 24th, 2009. CPM cited assets of $126,282 vs. secured liabilities of $908,173 and unsecured liabilities of $277,531. Bank of America was their only secured creditor. CPM held a meeting of their Board of Directors on the 23rd, and came up with the decision that if changes to a forbearance agreement with the bank could not be negotiated , they would file for bankruptcy. The two largest unsecured creditors were the company's landord and law firm.

Icv2 writes, "The assets were primarily accounts receivable, with some limited inventory. No specific value (or an unknown value) was assigned to the company’s intellectual property rights and master tapes." Central Park Media News will continue to report the developments, and any significant events regarding the titles currently and previously licensed by Central Park Media.

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