Called it: 4Kid$ Files for Chapter 11 Bankruptcy
Yahoo! Finance is currently reporting that North American media distributor 4Kids Entertainment has filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Companies who file under Chapter 11 are able to maintain business assets, which may or may not include licenses, in order to attempt to reorganize. By contrast, companies who file under Chapter 7 (as Central Park Media did in 2009) cease to function as a business.
The publicly-traded company had previously stated that it might file for bankruptcy protection after TV Tokyo and Nihon Ad Systems (NAS) filed a lawsuit lawsuit over its Yu-Gi-Oh! anime license. The lawsuit accused 4Kids of underpaying the Japanese licensors and of conspiring with North American anime distributor FUNimation Entertainment to hide income from the sale of Yu-Gi-Oh! DVDs in order to avoid paying royalties.
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The publicly-traded company had previously stated that it might file for bankruptcy protection after TV Tokyo and Nihon Ad Systems (NAS) filed a lawsuit lawsuit over its Yu-Gi-Oh! anime license. The lawsuit accused 4Kids of underpaying the Japanese licensors and of conspiring with North American anime distributor FUNimation Entertainment to hide income from the sale of Yu-Gi-Oh! DVDs in order to avoid paying royalties.
More