Alchemy Files for Liquidation Bankruptcy

by San Antonio Attorney

Alchemy, formerly known as Millennium Entertainment, recently filed for Chapter 7 bankruptcy protection through a U.S. Bankruptcy Court in Delaware.

Through a court filing, the state has a total of $50 million to $100 million worth of liabilities.  This is compared to $10 million to $50 million of total worth of assets.

Liquidation, a form of Chapter 7 protection, provides Alchemy the opportunity to rid itself of debt through selling assets to fulfill any debt to creditors.

Since Alchemy already acquired content distribution of Anderson Digital last 2015, a different filing was made for that company.  There are a total of two debtors and another long list of creditors that run more than 290 pages.

Alchemy has approximately 200 to 999 creditors, according to the filed court petition.  But other documents stipulate that there are about 8,700 creditors, reflected in more than 290 pages of the filing.

These include CAA, ICM, WME, Showtime, HBO, Anchor Bay Entertainment an House of Blues.

The recent bankruptcy filing did not come as a surprise as Alchemy already revealed their financial struggles last month.

Last February, Alchemy already sold off their titles and initiated a mass layoff to its employees.  When a company files for bankruptcy, employees are always the first to be affected.  Approximately 40%-50% were already laid off, when Alchemy did another round of retrenching of its employees last month.

Excel Entertainment, one of Alchemy’s creditors, a faith-based media entertainment company, recently filed a lawsuit worth $838,074.  Excel cited that it has not received payments from Alchemy since September 2015.

However, as Alchemy’s properties have been sold to majority of its creditors, there will be fewer assets to liquidate.  Creditors won’t expect much in return should Alchemy initiate a complete liquidation of all its assets and properties.

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