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Ventura Files General Assignment, Liquidates Assets

posted on 2006-05-08 06:41 EDT
  • Ventura owes over $78 million, $25 million from video distribution
  • Musicland owed Ventura $7 million when it filed bankruptcy in January
  • Anime companies will not see any proceeds of liquidation

Ventura Distribution, which handles Viz Media, Tokyopop, and Urban Vision anime, has filed a General Assignment for the Benefit of Creditors. This turns over Ventura's $52.8 million in assets to a third party that will liquidate them and begin settling with the companies that are owed money.

Ventura's filing states: "There will be no funds available from the proceeds of the sale of the assets of Ventura to distribute to priority and unsecured creditors."

ANN previously reported anime companies that distributed through Ventura would be paid in full despite Musicland's bankruptcy in January. It is now clear Ventura was unable to do this.

Ventura listed assets of $52,842,417 and liabilities of $78,680,915 as of Dec. 31 2005. The liabilities include $25 million owed to companies whose video Ventura distributed.

In the same article ANN reported Ventura was owed $5.8 million from bankrupt Musicland. Ventura's General Assignment filing places this number at nearly $7.1 million. It is unknown how much of this figure is debt owed to Viz, Tokyopop, and Urban Vision.

In March Showtime Networks filed a $7 million lawsuit against Ventura in an attempt to recover money it says it is owed. Meanwhile, a Viz spokesperson tells ICv2: "We are currently distributed through Ventura Home Entertainment, which is part of First Look Entertainment, but we are exploring our options."

Ventura's General Assignment filing also revealed PNC Bank received all of the $16.5 million that First Look Studios used to purchase Ventura in March. PNC was owed over $21 million in secured debt, which must be settled before unsecured creditors like anime companies are paid.

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