Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

4Kids Entertainment Files for Bankruptcy Under Chapter 11

04/06/2011 | 02:30pm US/Eastern
Recommend:
0

4Kids Entertainment, Inc. (Pink Sheets: KIDE), the global children's entertainment and merchandise licensing company, announced today that it has filed a petition in bankruptcy for relief under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of New York also covers all of the domestic wholly-owned 4Kids subsidiaries. 4Kids Entertainment International, Ltd., the Company's subsidiary based in London England, is not part of the bankruptcy filing.

In conjunction with the Chapter 11 filing, 4Kids also filed a variety of first day motions that will allow the Company to continue to manage operations in the ordinary course.

"We want to assure our clients, business partners and licensees that during the pendency of the bankruptcy, 4Kids will continue to provide the same level of service and dedication that it has in the past," said Michael Goldstein, interim Chairman of 4Kids Entertainment, Inc. "The Company will also continue to explore its strategic alternatives, including, the possible sale of the business or reorganization as a stronger and more focused company,".

The 4Kids bankruptcy filing automatically "stays" the lawsuit filed by the licensors of the Yu-Gi-Oh! property, Asatsu-DK Inc ("ADK") and TV Tokyo Corporation, (collectively, the "Licensors") on March 24, 2011 against 4Kids, until such time as the Court may order otherwise.

"We have made every effort to reach agreement with the Licensors," said Goldstein. "When the Company did not receive a positive response from Licensors to its settlement proposal, the Board of Directors was left with little choice but to authorize the filing of a bankruptcy petition under Chapter 11 in order to best preserve the business and assets of 4Kids Entertainment. We continue to believe that the purported termination of the Yu-Gi-Oh! Agreement was wrongful and that 4Kids' assessment of the audit claims will be vindicated in court. If the Court rules in favor of the Company, 4Kids will pursue the full measure of damages for the significant injury the Licensors have caused to the business of 4Kids," concluded Goldstein.

4Kids is represented in its bankruptcy filing by its long standing outside counsel, Kaye Scholer LLP.

About 4Kids Entertainment, Inc.

With U.S. headquarters in New York City, and international offices in London, 4Kids Entertainment, Inc. (Pink Sheets: KIDE) is a global organization devoted to the creation, development, production, broadcasting, distribution, licensing and manufacturing of children's entertainment products.

Through its subsidiaries, 4Kids produces animated television series and films, distributes 4Kids' produced or licensed animated television series for the domestic and international television and home video markets, licenses merchandising rights worldwide to 4Kids' owned or represented properties, operates Websites to support 4Kids' owned or represented properties. Additionally, the Company programs and sells the national advertising time in "TheCW4Kids" five-hour Saturday morning block on The CW television network.

Additional information is available on the www.4KidsEntertainment.com corporate Website and at the www.4Kids.tv game station site.

The information contained in this press release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors beyond the Company's control, including general economic conditions, consumer spending levels, competition from toy companies, motion picture studios and other licensing companies, the uncertainty of public response to the Company's properties and other factors could cause actual results to differ materially from the Company's expectations.

Investors:
4Kids Entertainment, Inc.
Bruce R. Foster, 646-822?4258
bfoster@4kidsent.com


© Business Wire 2011
Recommend :
0
React to this article
Latest news
Date Title
5m ago A "Historic" Bear Move Setting up in NZD/JPY
5m ago HOME BANCSHARES : Submission of Matters to a Vote of Security Holders, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
5m agoDJTPG-Led Group Closes $450 Million Investment in Airbnb
5m ago Zepol Finds U.S. Imports From Russia Increased in March
8m ago RIVERBED TECHNOLOGY : U.S. Patents Awarded to Inventors in District of Columbia (April 18)
8m ago The Top 5 Residential VoIP Providers for 2014, Ranked by 1010PhoneRates.com
10m ago Audi Honors 61 Dealers With 2013 Magna Society Awards
12m ago PENNS WOODS BANCORP : Reports First Quarter 2014 Operating Earnings
13m ago Atos says offer for Steria, in cash, still open after Sopra bid
15m agoDJTPG-Led Group Closes $450 Million Investment in Airbnb
Latest news
Advertisement
Hot News 
HAVELOCK EUROPA : Preliminary Results to 31 December 2013
LDK SOLAR : Provides Additional Information on its Request for Review of NYSE Regulation's Decision to Suspend Trading and Commence Delisting Procedures
HAYNES PUBLISHING : Third Quarter Hit By Us Inventory Returns, Weak UK
SPACEANDPEOPLE : Shares Slide As It Lowers 2014 Forecast
BLUR : Shares In Blur Group Plummet Due To Delayed Revenue Recognition
Most Read News
1d ago WALT DISNEY : Disney sees operating income growth at cable networks
12h ago SLINGSBY H C : Company Events - 7 Days Ahead Events
6h ago NOKIA : Viber targets 30 million users in india by year end
1d ago LULULEMON ATHLETICA : CEO looks beyond yoga wear for growth
1d ago CHINA SOUTHERN AIRLINES : 30pc cancellations by China tourists
Most recommended articles
1d ago U.S. shares seen opening lower as tech giants stumble
1d ago Financials bolster FTSE after reassuring U.S. earnings
1d ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
5m ago A "Historic" Bear Move Setting up in NZD/JPY
5m agoDJTPG-Led Group Closes $450 Million Investment in Airbnb
Dynamic quotes  
ON
| OFF