Pro-Active files Chapter 7 bankruptcy
By VB staff -- Video Business, 5/14/2008
MAY 14 | Pro-Active Entertainment Group filed for Chapter 7 bankruptcy protection in U.S. Bankruptcy Court for the Central District of California on May 7.
Pro-Active represented dozens of mainly small video labels, acting as a consolidator to key retailers and distributors.
A resolution in the filing, signed by president Leonard Levy and other officers, stated reasons as video distribution “has ceased to be a profitable business due to the proliferation of films on the Internet;” “from early 2006 until mid-2007, the directors of the corporation have been unable to show a profit;” and “the decision was made to cease business operations in November 2007.”
The company listed zero assets and $460,231.68 in liabilities, primarily in the form of film distribution fees due the labels. The fees were listed as unsecured claims.
Among the largest unsecured creditors are WellGo USA in Richardson, Texas, $101,730; Hummingbird Films of Madison, Wis., $69,300; Red Pepper Creative, Charlotte, N.C., $32,178; Distinctive in Encino, Calif., $26,952; Cheezy Flicks, Portland, Ore., $17,206; Lifesize Entertainment, Parsippany, N.J., $16,066.94; VAI Music, Pleasantville, N.Y., $12,081; Mid-Carolina Media, Raleigh, N.C., $10,845.54; and Microcinema, San Francisco, Calif., $10,651.94.
Some of those companies also were listed as having default judgments against Pro-Active for breach of contract.
