Pictor Files Chapter 11 Bankruptcy

Posted on 5/9/2001 by Jim Pickerell | Printable Version | Comments (0)

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PICTOR FILES CHAPTER 11 BANKRUPTCY



May 9, 2001

On May 3rd Pictor International, Inc., a subsidiary of Pictor International, Ltd. filed Chapter 11
bankruptcy in the District of Columbia. The company had total assets of $635,000 and debts of
$1,278,341.


Named among the largest debtors were photographers Alan Laidman, Robert Llewellyn, Todd Langley,
Terry Wild, David Stover and Bob Daemmrich. Several photographers report that they have not received
any payment since last year.


The single largest debtor is Pictor International Ltd. which is owed $781,290 as an inter-company
loan. It is believed that much of this loan was used to pay off back debt to photographers a year or
so ago.


As of May 5th the offices in Los Angeles, Atlanta and Washington, DC have been closed and all
operations centralized in New York. Many of the employees in the closed offices have been terminated
and the bankruptcy court has authorized the paying of severance to these employees.


All images under contract to Pictor, Inc. have been frozen and they can not be returned until the
bankruptcy is settled. The court considers them an asset of the business.


Chapter 11 is designed to separate old debt from new obligations. Thus, royalties from any sales
made after May 3, 2001 must be paid to the rights holder in the normal manner. These new royalties
will be paid before any settlement is made for the old obligations.


An important distinction in this situation is whether the photographers are contracted to Pictor
International, Inc. hereafter known as "Inc", or Pictor International, Ltd, hereafter known as
"Ltd". Only "Inc" is affected by this bankruptcy filing.
"Ltd" operations should continue as normal and the accounts of photographers contracted to that
company should be paid without interruption.


It is our understanding that some photographers have been receiving separate payments from London
for European sales. If they were contracted to "Inc" it is unclear whether those payments will
continue, as the monies may become part of the debtors pool.


A statement of financial affairs that will list the amount owed to every creditor, including all
photographers, should be filed with the court by mid-June.


Copyright © 2001 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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