VidAngel Trustee Files Reorganization Plan with Bankruptcy Court

Company Submits Plan to Meet All Financial Obligations and Move Forward from Lawsuit as Vibrant and Growing Business

 

(Los Angeles, CA—March 5, 2020) VidAngel is announcing today that due to rapid
growth over the last year, its Trustee has filed a plan of reorganization which outlines a
strategy for the company to move out of bankruptcy. The company’s operating results,
as reflected by monthly filings over the past months and last year, reflect growth in
gross revenues, emerging success of new lines of business and the stability of the
company’s core business.

 

VidAngel, Inc. Trustee, George Hofmann, has issued the following statement:

“Bankruptcy law was established by Congress to give companies a chance to rehabilitate, get back on their feet, pay their creditors, and continue to move forward.
VidAngel has a reorganization plan that does just that. After entry of an adverse judgment in an amount that, initially, seemed insurmountable, the company’s business and revenues are growing, and the company is expanding into new lines of business. According to third party financial experts hired to advise me in the reorganization process, VidAngel’s robust growth makes paying the judgment in full feasible. I look
forward to the court confirming a plan so that VidAngel can emerge from bankruptcy, pay its debts and focus on growing a great business.”

 

VidAngel, Inc. CEO Neal Harmon has issued the following statement:

“We would not be in this position today were it not for the support and loyalty of our customers, investors, and the resilient VidAngel team. We’ve gone from avoiding threats of a shutdown to being able to say, ‘just send us the bill’. VidAngel is turning a page in its history, and we believe that we now are moving forward stronger than we’ve ever been. VidAngel remains committed to helping you, the viewer, make entertainment good for your home.”

 

Reorganization Filing Facts

● In light of financial results reflecting VidAngel’s business growth and future
potential, VidAngel’s Trustee has decided to file a reorganization plan to pay the
adverse judgment in full.

● Third party experts have determined, given VidAngel’s financial results to date
and the anticipated stability and growth of its current lines of business, that it is
feasible to pay off the adverse judgment over a 14-year plan.

● Under the proposed plan, VidAngel’s appeal of the California court’s judgment
will continue, the shares of its investors will be preserved and VidAngel’s
management and board will control the company moving forward.

● The plan confirmation process is anticipated to take a minimum of 60 days.

 

What this means for VidAngel

Should the judge confirm the reorganization plan, VidAngel is moving out of bankruptcy and on from the lawsuit as a healthy company with exciting growth. 

 

What this means for the $62.4 Million Judgment 

This reorganization also means that we get to appeal both the summary judgment ruling and the $62.4 million judgment, and feel we have a strong case. But in the event that our appeal fails, the $62.4 million judgment is not a death sentence. Third party experts have opined that VidAngel can pay off the judgment over a 14 year period. That’s an unbiased third party who has looked at our financials and growth prospects and is saying that VidAngel can pay this off. All $62 million.

 

What this means for VidAngel Investors

We are especially happy to inform our investors that, if the Trustee’s plan is confirmed by the Bankruptcy Court, VidAngel investors will retain their equity in the company and have the opportunity to share the benefits of future success.

 

We would not be in this position today were it not for the support and loyalty of our customers, investors, and the resilient VidAngel team. We’ve gone from avoiding threats of a shut down to being able to say, ‘just send us the bill.’ 

VidAngel is turning a page in its history, and we believe that we now are moving forward stronger than we’ve ever been. VidAngel remains committed to helping you, the viewer, make entertainment good for your home.

Thank you. We are so excited for the days ahead.

 

 

55 thoughts on “VidAngel Trustee Files Reorganization Plan with Bankruptcy Court

  1. The only complaint we have is there not much new content. We love the idea of the Profanity free movies
    Thx

      1. Hi Neil, could you please tell me where as an investor I can see the “progress” of the shares that I have bought? Is that information available? If so, where? Thanks.

    1. Actually, Variety reported on this very question today: ‘VidAngel has avoided streaming content from any of the plaintiff studios, so as not to violate an injunction in the copyright case. However, the trustee has said in court papers that the company “reserves the right” to stream the studios’ works under the newest iteration of the service.’
      https://variety.com/2020/biz/news/vidangel-bankruptcy-reorganization-plan-filed-1203525316/

      To date, the Trustee has continued VidAngel’s long time policy of not filtering titles owned by plaintiff studios.

      1. This is great news!!! Please tell me that there will be plans to expand to HBOMAX after it launches! I’m looking forward to a lot of its content (mainly Dune:Sisterhood) but will not subscribe to them unless I can stream through VidAngel. It just won’t be worth it for me!

      2. Does this mean VidAngel will continue to not provide filters for companies such as Disney and Warner Bros

  2. Thanks Neal – this is such great news!! You and your teams have fought a good fight. My family is hoping that someday VidAngel can return to filtering movies from all studios. Even still, it’s a great service as is!! Hearing that we may be able to retain our investments is a huge success for VidAngel – how many companies can get beat up like that by sumo Disney, pull itself up off the mat, and keep swinging in full force? I figured I had lost my investment, but I didn’t care; it was money well spent! I’d do it all over again in a heart-beat.

  3. Neal this is great news!!! Can’t wait for all of us to move past this and turn the page.
    Any chance we will see Netflix or Amazon integrate VidAngel into their streaming platforms?

    What’s does this mean for skip.tv foundation?

  4. Great to hear, thanks for the update!! Any chance we’ll be seeing the blocked content back on soon? Keep up the hard work, thanks for what you guys do!

  5. Hi Neal – your platform (VidAngel Studios) through which independent producers can fund projects (as was done with The Chosen) seems like an incredibly under realized opportunity, especially in this day when it seems so many independents are seeking ways to capitalize their projects. It would seem that if it’s structured properly, that VA Studios could be THE premiere platform through which independents could break into the industry and make their mark (if not realize a nice return). Is VA reaching out to potential producers (i.e. college film programs and others) and marketing their studio platform as an opportunity through which they can fund ambitious projects (and not just religious ones) and make a name and possibly financial returns for themselves? How about independent investors (self-directed IRAs)? It’s one thing to get spiffs on those “other funding sites” because of a contribution. It’s another to own a stake and potentially get a return. I’ve only seen two projects since I saw this first introduced. I think you could have a lot more if you pitch it right.

  6. We invested because we believe in the right to filter in our own home. After everything that went down and bad news after the other I started getting discouraged. Also didn’t hear much updates other than the production studio. We like The Chosen btw, waiting on season 2. That’s all I’ve seen by VidAngel. Anyway I thought the money we put in was just a lost cause. Maybe we could of put it into somewhere else with the same cause without the streaming legality issues. Anyway, good to hear that VidAngel can potentially bounce back up and that there is growth! Hoping for the best!

  7. Keep up the great work. I believe in what you are doing and think we need to continue the fight for free speech, the freedom to watch and not watch what we want, and to keep our families safe from the filth that is out there. My investment is worth every penny for the cause.

    1. Amen! It boggles my mind that Hollywood has the gall to claim that once a movie is purchased by a private individual that THEY have the right to say the owner does not have the right to alter the product in any way. Does the owner “own” the product or not? When I buy a car do I not have the right to paint it a different color? What about dying a pair of pants a different color? Both cars and clothes are “art” to some people. This entire lawsuit against you guys is simply Holloywood slime. So glad to hear you guys are still in business and we wish you the very best!

  8. Neal, we’re so pleased to hear this news! We can only imagine the toll this has taken on you guys and your families in mere stress alone, and any light at the end of the tunnel is a good light. As an investor, thank you for not giving up the fight. Even though we knew going in that it was a fairly high-risk endeavor, we appreciate your not giving up the ship even though she took some shots right at the waterline!

    Our prayers continue to be with you. Looking forward to great things to come!

  9. Vid Angel, We invested money years ago and never received any statement or acknowledgement? I’m not sure if we are the only ones who never received a statement? With your statement above referencing investors will retain equity in the company if the judgement is in your favor. How do we know if we are investors if vid angel as a company never issued investors a statement. Please advise

    1. If you’re receiving our investor updates, then you should be a shareholder on our records. Please contact investment@vidangel.com and they will help you access your records. Thank you for investing! We could not have gotten here without you.

  10. Are you still opening up investment opportunities? I am like the others in believing that the risk was high but worth the effort . I am pleased with your tenacity and, although I can’t invest huge sums, I would continue to help where I can. Thanks for fighting.

    1. Not currently, but it could be possible again after the confirmation of a bankruptcy plan. Thanks for your support and interest!

      1. I’m in the same boat as Mark M. above. I was a college student before when I only invested a tiny bit. I think this company has huge potential and I am interested in investing more.
        If you do open more investment opportunities, can I assume we (those of us receiving these Investor Updates) will be the first to know?

        Keep up the great work!!!

  11. Thanks for the update to investors, Neal. I’m glad to hear that should we not be successful in appealing the amount of the judgment it can be paid back over time.
    I’d like to know if the successful ruling for the the participating studios will make it more likely for the studios that did not participate in the lawsuit to file and win a judgment? If so, what kind of risk would that be relative to this suit and judgement?

    My last question is also about the ability to stream works from the plaintiff’s under the new modal. I saw your comment about the trustee’s comment, but am not sure its significance. Is the court going to provide any clarification outright and what weight does the trustee’s statement hold?

    Thank you.

    1. Relative to the current lawsuit with the $62 million judgment, my understanding is that the other studios were required to file a claim in the bankruptcy court a while ago (before what’s called a “bar date”) and they did not do it. We sent them a notice of the bar date so that they wouldn’t miss it if they wanted to file a claim. They choose not to file.

      On your second question, the trustee’s court filings must speak for themselves. I don’t have the filing with me that Variety referenced. I know it can be accessed from legal records on Pacer. https://www.pacer.gov/

      Case information is found here: http://blog.vidangel.com/chapter11

  12. Neal, so glad that their is hope for the company and the thousands of dollars I’ve invested. I currently do not use the service but I believed in the mission, so I put the money down. I really appreciate the openness and frequent communication and updates.
    I hope this thing goes big and finds new ways to bring revenue!

  13. This was surprising and great news. Will Vidangel consider being able to connect and filter content from more streaming services like Pureflix.com, Christiancinema.com, etc. I would like to avoid renting from Amazon and Netflix services.

  14. Neal, if the 14 year debt payment plan is approved does that mean it will be 14 years before investors begin to receive dividends on Vidangel profits?

    Love the service and the freedom it offers families. Keep up the good fight!

  15. If investment is still intact, but I, as an original investor, need that money, how can I sell my shares I purchased? If I can’t sell, or somehow get my money back, then that money is as good as being lost.

    If the investment were lost, or if I can’t get it back somehow, either way, that is the last I’ll ever see of the money.

    I would also like to confirm how much I invested. How can I do that?

  16. Neal, Happy to get an update. My biggest concerns are as follows (in order of magnitude, greatest first):

    1. Virtually every time I mention VidAngel to friends, family, ward members, etc no one is aware that VidAngel is still in business and functioning under a “new” model. This frustrates me because these people are perfect customers but are uninformed. I am confident that there is a large number of potential subscribers out there that simply need to be educated. What are VidAngel’s plans for marketing?

    2. The number of streaming services is growing rapidly but VidAngel is not. What is being done to expand VidAngel’s offering of streaming services?

    3. Others have mentioned, and you have commented on, lack of filtering of content by studios that were a part of the law suit. We want this. 🙂

    4. Not sure what liquidity events are possible in the near term or long term… Any thoughts on this?

    1. Blake, great to hear from you. I hope you can appreciate the implications of this announcement. VidAngel is growing, to the tune of being able to pay off $62 million, which is the best possible outcome for your investment. Our actions over the coming months will provide some (but unlikely all) answers to your legitimate concerns. Growth, however, I hope you’ll agree is what matters most.

      1. Movies have been legally edited for decades for airplane usage during flights and to be re-shown on T.V. channels. What is the difference between this and what VidAngel is trying to do?

        1. The airplane version the studios decide what and whether to skip something. With VidAngel, the home decides what and whether to skip something.

          Studios/Directors want the last say.

          1. If they want the last say and they had to edit out questionable content anyway for a diverse-aged audience on an airplane, then why are they not willing to sell us their regular uncut version AND their edited version for us to buy? Why are they not even willing to meet us halfway? (Side note: It is ironic that Disney, of all entertainment companies, is fighting this the most vehemently.)

          2. Sony’s CleanVersionMovies.com tried to do just that and they didn’t last more than a couple weeks. Directors guild threatened to sue them if they didn’t take them down. So they took them down.

            Government required the airline version (like it required the TV cut) and the studios complied with a government mandate when it made them money. They opted out on the home because it was not forced by the government.

  17. Just started experiencing issues filtering Amazon Starz’s “Outlander”…Won’t let me connect through VidAngel. I assume it is due to lawsuit. Am I correct? If yes, can you tell me when we might be able to resume using this awesome service.

    I was able to watch Jack Ryan without all the cursing…Wonderful…Hope you will be successful!

  18. As longtime users of the service we say thank you! Recently, we have run into serious issues that make the service almost unusable.
    1) As noted on your site, web streaming of Amazon Prime/Video is not working. Any ETA on resolving this?
    2) the Apple TV app will not stream Amazon Prime/Video even though those services are connected and previously working.
    3) The new iPadOS app with the send to TV (Apple TV in this case) is flakey and repeatedly fails to connect, which was not an issue in the old app, but once connected it works thankfully.
    Hope y’all can resolve the technical issues soon. We wouldn’t want to lose the ability to skip the garbage, so rooting for your success in all aspects of the venture! God bless you, the staff and your families!

  19. This is just a fantasy but I’d love to have a rich benefactor buy *Disney*, and replace top management with pro-family, pro-filter people. Disney has shown, “If we can’t produce quality, we’ll just buy the rest of the market.” Can you tell I’m frustrated?

  20. I know this isn’t really related, but I wasn’t sure where else to post. I saw this article about Disney filtering their own movies on Disney+. I am in favor of filtering and I just wanted to know if you were aware of this, if it could be useful to you at all in the legal battle. The article is written from a negative perspective. Disney had removed nudity and swears from some of their films on their own streaming service. If they do it without viewer consent, why can’t you do it with viewer consent? Let me know what you think.
    https://www.theverge.com/2020/4/14/21220576/splash-tom-hanks-disney-plus-butt-cgi-hair-streaming-physical-digital

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