06-20-2004, 08:46 PM
Posted 20/06/2004
THE PULSE has learned that CrossGeneration Comics filed for Chapter 11 and laid off the remaining creators on staff. Those on staff hadn't been paid for at least two months. Sources close to CrossGen have told us that CrossGen President and Publisher, Mark Alessi had turned down several opportunities to sell the company outright and instead hopes to keep it alive with a skeleton crew under bankruptcy protection. His hope is to find enough investors and working capital to relaunch the company. Sources close to the imprint estimate Alessi has spent close to 30 million dollars on CrossGen and all its related properties since the company's inception.
According to the U.S. Securities and Exchange Commission
A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.
Most publicly-held companies will file under Chapter 11 rather than Chapter 7 because they can still run their business and control the bankruptcy process. Chapter 11 provides a process for rehabilitating the company's faltering business. Sometimes the company successfully works out a plan to return to profitability; sometimes, in the end, it liquidates.
Former Crossgen VP of Special Projects Brandon Peterson made this comment. "I've remained quiet in the press about CrossGen for the most part, due to professional and personal courtesy, and I will continue to remain mostly silent. I will say that there I grew tremendously professionally and personally, and will continue to consider it among the most important times in my life. I wish everyone involved with these latest events the best of luck, and I hope they come out all right. They are among some of the nicest, most talented, and dedicated people I have ever worked with. Before making cruel and lame jokes of the situation, I would hope some people would realize those nice, talented people now have real hardship ahead supporting their families and loved ones in a ruthlessly crowded comics market. Comics may be a hobby to most reading this so they can be glib, but for those people I worked with it's how they put food in mouths and a roof over their heads. Anyway, best of luck all. I hope you land on your feet."
THE PULSE has learned that CrossGeneration Comics filed for Chapter 11 and laid off the remaining creators on staff. Those on staff hadn't been paid for at least two months. Sources close to CrossGen have told us that CrossGen President and Publisher, Mark Alessi had turned down several opportunities to sell the company outright and instead hopes to keep it alive with a skeleton crew under bankruptcy protection. His hope is to find enough investors and working capital to relaunch the company. Sources close to the imprint estimate Alessi has spent close to 30 million dollars on CrossGen and all its related properties since the company's inception.
According to the U.S. Securities and Exchange Commission
A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.
Most publicly-held companies will file under Chapter 11 rather than Chapter 7 because they can still run their business and control the bankruptcy process. Chapter 11 provides a process for rehabilitating the company's faltering business. Sometimes the company successfully works out a plan to return to profitability; sometimes, in the end, it liquidates.
Former Crossgen VP of Special Projects Brandon Peterson made this comment. "I've remained quiet in the press about CrossGen for the most part, due to professional and personal courtesy, and I will continue to remain mostly silent. I will say that there I grew tremendously professionally and personally, and will continue to consider it among the most important times in my life. I wish everyone involved with these latest events the best of luck, and I hope they come out all right. They are among some of the nicest, most talented, and dedicated people I have ever worked with. Before making cruel and lame jokes of the situation, I would hope some people would realize those nice, talented people now have real hardship ahead supporting their families and loved ones in a ruthlessly crowded comics market. Comics may be a hobby to most reading this so they can be glib, but for those people I worked with it's how they put food in mouths and a roof over their heads. Anyway, best of luck all. I hope you land on your feet."