Archive for 'Bankruptcy'



Would Be Print Authors Scammed by Vanity Press

San Diego publisher, Ed Johnson, promised non published authors that he could make their dreams of being in print, a reality. For $5,700.00 an author could send their book to be printed through Johnson’s press. The books, however, never materialized. Emails went unanswered and phone calls unreturned. The website is no longer operation.

Johnson says that the firm has just gone out of business due to the challenges that effect any small business. Unfortunately, about 40-50 aspiring authors who had paid thousands of dollars were left with nothing to show for it. Johnson operated at least two publishing ventures, the first was one Simon & Northrup in 1998. It’s corporate offices were at 3333 Midway Drive in California. Simon & Northrup went belly-up when the California Secretary of State suspended its articles of incorporation in 2004. This didn’t deter Johnson. He began a new publishing venture in 2005 called Martell Publishing housed at the same Midway Drive address.

There’s more to this horrific story including how an office manager was forced in editing position and that there are no recorded published books from Martell Publishing and only 27 from Simon & Northrup. …

REVIEW: E Publisher Bankruptcy Alert: Mardi Gras Publishing

On the heels of the Triskelion Bankrupty and the Silk’s Vault troubles, Mardi Gras Publishing will apparently be filing Chapter 7 bankruptcy at the end of this week or the start of next. (registration required). The rights will be returned to the authors but as we discussed previously, the bankruptcy court has the power to bring those rights back into the estate.

Mardi Gras authors do not want readers to be buying the books because they aren’t likely to receive a royalty off the sales.

Author’s Rights When a Publisher Files Bankruptcy

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.

When Triskelion announcement that it would be closing its doors and filing bankruptcy, the issue of authorial rights arose. I did a little primer on copyright law a couple of weeks ago as it related to Simon & Schuster’s rights grab. For ease of reading, I’ll include the pertinent parts here.

Brief summary of copyright protection:

When an artist creates a work of art, this art has a copyright. The copyright is a form of protection that is granted by the U.S. Congress. Essentially, the writer of a …

Triskelion Bankruptcy Update: Contract Clause

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 …

REVIEW: Triskelion Publishing Closes Its Doors

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.

On the heels of its RWA dis-invitation; complaints of unpaid royalties; and the resignation of Gail Northman, Triskelion Publishing is closing its doors. From a source, it appears that Triskelion will be filing Chapter 7 Bankruptcy which is a liquidation of assets rather than a Chapter 11 or 13 which is a re-organization.

The rights that Triskelion owns, depending the contract, may be sold to benefit the creditors, which can be an author who hasn’t received royalty payments to the internet service provider to the web developer …

Book distribution company (AMS) files for bankruptcy. Losses huge.

Advanced Marketing Services, Inc. is a book distributor to warehouse clubs, speciality retailers, e-commerce companies, and bookstores.

The Group provides product selection advice, specialized merchandising and product development services, distribution and handling services to membership warehouse clubs. Via Business.com

This morning, Publisher’s Weekly reported that AMS is filing for a Chapter 11 restructuring. Chapter 11 allows the business to basically refinance its debts by either discharging them (which means that the company doesn’t have to repay the debt) or restructuring the debt. It’s debts owed are meaningful:

Random House, which is owed $43.3 million
Simon & Schuster, Penguin and Hachette Book Group are all owed more than $20 million each
HarperCollins is owed $18 million

Although the bankruptcy filing says money will be available to pay unsecured creditors, Rautenstrauch said at this point he wasn't sure how much unsecured creditors will be paid. It is also not clear when any payments will be made. via Publisher’s Weekly.