MUMBAI:4Kids Entertainment, the global children’s entertainment and merchandise licensing company, has filed a petition for relief under Chapter 11 of the US 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, 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.
4Kids Entertainment interim chairman Michael Goldstein said, "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. The company will also continue to explore its strategic alternatives, including, the possible sale of the business or reorganisation 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 and TV Tokyo (collectively, the “Licensors”) on 24 March, 2011 against 4Kids, until such time as the court may order otherwise.
Goldstein adds, "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".
