Loose ID Bids on Triskelion Assets in Bankruptcy
Loose ID Bids on Contractual Assets
Last week, the week of October 8, 2007, Loose ID made a bid for the contractual assets of Triskelion Publishing. This is a brilliant public relations move by Loose ID as e authors on various message boards are already treating this as a gift. The press release by Loose ID states that there is a fourfold purpose in its bid:
Loose Id’s intentions in bidding on the contracts are fourfold: (1) to facilitate the unencumbered acquisition of works offered to the company by former Triskelion authors; (2) to assist authors in securing release or reversion of rights to their work; (3) to potentially acquire and re-publish top flight manuscripts that match Loose Id’s publishing guidelines; and (4) to reassure authors pursuing e-publishing careers of the sound business practices and corporate ethics of reputable e-publishers.
Essentially, Loose ID is going to bid on the entirety of the contractual assets with the intent of acquiring the ones that make money and releasing the ones that don’t (i.e., the ones that couldn’t generate even $25 in royalties). The bid that Loose ID has made is $1500.00 for the entirety of the contracts. If Loose ID wins the bid, it stands in the shoes of Triskelion Publishing in that it becomes the publisher in the contracts and all the contract terms remain the same. Loose ID appears to be a good publisher so that it may not matter to the author that the publisher is will be Loose ID and not Triskelion.
I do wonder what that means for Loose ID’s slush pile. Having to slog through all the contracts for books held by Triskelion and decide what to keep and what to discard will take some time.
A winning bid by Loose ID does not mean, however, that every author is going to get her rights back. If authors banded together and made a higher bid, i.e., if every Triskelion author ponied up $10 or maybe $20, they could bid for the rights as a group, obtain the rights to their books, and then re-sell those rights. The Trustee is likely to take the highest bid, regardless of who is making the bid.
Trustee’s Plan to Sell
The Trustee plans to auction all assets, including the executory contracts, off to the highest bidder, the auction taking place on November 15, 2007, at 10:00 am., at the offices of Lane & Nach, P.C., 2025 N. Third Street, Suite 157, Phoenix, AZ 85004.
Objections to the plan to sell can be made two ways:
- (a) mail or hand-delivery to 230 North First Avenue, Suite 101, Phoenix, AZ 85003-1706; or
(b) electronically at the Court's website: ecf.azb.uscourts.gov using the Court's electronic filing procedures
The hearing regarding the Trustee’s plan to sell off the assets will be held at the U.S. Bankruptcy Court, 230 North First Avenue, Courtroom 703, Phoenix, AZ, on October 18, 2007, at the hour of 10:00 a.m. Many times, participants can attend hearings by telephone if arrangements are made ahead of time.
The Trustee’s bidding and sale procedures are as follows:
- A two hundred dollar ($200.00) cash deposit (refundable) will be required from bidders at the time of auction.
- Final payment shall be made by cash or cashier’s check and delivered at the auction.
- Bids may be made in increments of one hundred dollars ($100.00).
- The Auctioneer and Trustee reserve the right to sell the Assets in bulk or separately depending on which the sale procedure maximizes the value to the estate.
- All sales are subject to sales tax unless the property being sold is tax-exempt or a resale number is used as proof of exemption.