Public Media Works announced that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code as well as shut down its movie rental kiosk business, which operated under the name Spot. The difference.
Unedited press release follows:
Public Media Works Files Voluntary Chapter 11 Petition
SAUSALITO, CA–(Sep 26, 2011) – Public Media Works (OTCBB: PUBM) announced today that it has filed a voluntary petition under Chapter 11 of the U. S. Bankruptcy Code.
Over the past several months, Public Media Works has undertaken significant efforts to reduce its expenses including ceasing operations of its movie rental kiosks while developing plans to continue in its core business. The Company’s inability to identify new sources of liquidity necessary to redeploy and market its kiosks have caused it to seek bankruptcy protection in order to better manage its operations through an orderly restructuring process. The case number of the filing is 6-11-bk-40137-MJ.
“We believe that Chapter 11 is necessary to restructure the Company’s outstanding debt, and establish a sustainable, long-term capital structure for the business,” said Martin W. Greenwald, CEO of the Company. “We have worked tirelessly during the past several months to develop our plans, address our existing financial obligations, and seek further funding. The Company has concluded that it would be unable to secure the financing it requires in the absence of a Chapter 11 plan of reorganization which, if successful, can clean up the Company’s balance sheet.”
“Our goal is to emerge from Chapter 11 as soon as possible. The Company is working on securing a debtor in possession (DIP) loan to allow it to maintain operations at a minimal level while it develops a Plan of Reorganization to present to creditors and the Court for approval. I want to thank all of our shareholders and creditors for their patience in this difficult time. It has been very challenging,” said Mr. Greenwald.