DISCLAIMER: Just to CYA, I feel like putting up a disclaimer. There is much that I don’t know about the Triskelion situation and any discussion regarding the law and the legal issues surrounding copyrights and publisher bankruptcies are general and not to apply to any one particular situation. If you feel like you are in a position where you, personally, need to apply this information to a case, you should seek a lawyer right away. My posting of my thoughts regarding the legal issues surrounding this matter or matters similar should not be construed as specific legal advice nor does it create an attorney/client relationship.
Edited to add: The following contract clause is known as an ipso facto clause and generally held to be invalid by bankruptcy courts.
I was provided this and wanted to share it with the authors. This should be in your contract. Utilize it to protect your rights. Please note that this is no guarantee of a reversion of rights but if you don’t take action now, you might be in worse shape. I would not only send an email but a certified letter showing proof of mailing. Always keep a copy for your records.
If the Publisher is adjudicated as bankrupt or liquidates its business, this agreement shall thereupon terminate, and all rights granted to the Publisher shall automatically revert to the Author.
Upon such termination, the Author, at his or her option, may purchase any remaining book stock for any print edition (not including electronic downloads or print on demand editions) for one-half of their manufacturing costs. The Author must exercise this option within sixty (60) days of notice by the Publisher.
I would think that authors would want to send notice to Kristi now before Triskelion files for bankruptcy on July 2nd. Further, authors may want to advise your readers to stop buying the books at Triskelion since any money Triskelion now intakes will be distributed by the trustee and the authors are not likely to see that profit.
Also, if authors do decide to obtain a lawyer, I would do so as a group. The costs could probably be defrayed since all the authors have the same contract and thus the same legal issues. More information to come later.