Agreement Reached on Chapter 11 and Chapter 7 Motions

All,

 

We have news.

 

First a refresher on bankruptcy – Chapter 11 means VidAngel still serves its customers and Chapter 7 means VidAngel is shut down.

 

We’ve reached an agreement with the studios to appoint a chapter 11 trustee in exchange for:

1) Withdrawing the studios’ chapter 7 motion

2) Under Bankruptcy law, the studios can elect whoever they choose if they don’t like the trustee that is appointed, but under this agreement, they only choose from four people we’ve agreed on in advance.

 

We decided to do this because we think it will allow an objective third party help us get through the chapter 11 reorganization process with more favorable results for the future of VidAngel. And it will save money that would have been spent on legal bills.

 

We are turning our sights to successful reorganization with the help of a trustee rather than spending unnecessary time and money fighting the studios’ motions. We’re optimistic about our prospects for reorganization.

 

Best regards,

Neal Harmon

Co-founder & CEO

VidAngel

7 thoughts on “Agreement Reached on Chapter 11 and Chapter 7 Motions

  1. If I understand correctly, this is fantastic news! VidAngel will continue, my family and I will be able to continue to filter!

    How does this effect the Disney properties as far as, will they be able to be filtered now? Or is that another fight?

    I ask because Disney+ is coming and I know a few people who have been very interested in subscribing to VidAngel and having access to Disney properties would tip them over the edge.

  2. My understanding of the studio’s objection and push for Chapter 7 was a loss of assets. With this compromise, will the filtering technology still go to Skip? What is the future of this specific filtering technology? If Vidangel can navigate the waters and successfully survive reorganization, what do you see as Vidangel’s competitive advantage? Thanks.

  3. This sounds positive. Right? This is the first time it seems like Disney is willing to play ball, even if it’s just a little bit. They’ve been so relentless during the entire process that it’s refreshing to see them meet you in the middle a little bit.

    I’m curious about whether the courts will say whether or not your current streaming model is legal or not. I hope they say it’s legal. Any news on that? Because if they state that your current Netflix/Amazon model is legal, you’ll be able to start filtering Disney stuff again, right?

  4. What does this mean about appealing the judge’s ruling in June? Will it still continue to the Supreme Court? Or is it being dropped? Are these separate issues?

  5. Warner Brothers and Disney, are the two big ones. I think as long as you own a movie you should be able to watch that movie. But the main objective right now is Disney Plus if that’s the service you pay for I see why not.

Leave a Reply

Your email address will not be published. Required fields are marked *