DRG and Content Media Corp. were among those that came close to acquiring the assets of Canadian distributor before it decided to close operations yesterday, it is understood.
The distributors both held talks with CableReady CEO Gary Lico (left) over a deal to take on the company’s assets after it had gone into Chapter 11 bankruptcy protection earlier this year. Sky Vision is understood to have also kicked the tires.
However, no deal was forthcoming and Lico yesterday informed his clients he was closing the company after 21 years in business. He said since making the bankruptcy filing the focus had been on “minimising the hit” to CableReady’s creditors, who are primarily banks and producers. TBI understands US prodco LMNO was a major creditor and that CableReady did around S$500,000 in sales after the filing.
“Offers to buy the company were considered, but none delivered enough revenue to our clients,” he wrote in a note sent out yesterday.
Creditors could receive up to 60% of monies, which Lico described as being on “on the very high end of how these things are usually resolved”.
Programming materials owed to buyers will also be delivered before the company officially closes at the end of the year, Lico added.
Lico will now launch a new company, LittleOlMe.TV which has retained rights to CableReady series Medical Detectives (aka Forensic Files), the producer of which, Medstar Television, is also understood to be a key CableReady creditor.
The new firm will focus on US cable channels via format development and production and international sales management.