JKP Begins Seeking Injunction Against Distribution Companies

Kat Khan
LOS ANGELES — After filing for Chapter 11 bankruptcy, Jill Kelly Productions Inc. is now seeking an injunction against various distribution companies from selling several of its masters and materials.

Court documents filed on Nov. 15 name International Video Innovation Inc., L&M Optical Disc West LLC, DVD Concepts, Direct Video, Dara Distributors, Easy Bay Inc., Mallcom Inc., Triple A Video, Zeev Lavy, Danni Skura and Alon Notea as defendants.

Pending a hearing, all defendants have been restrained from replicating, marketing, distributing or selling copies of all JKP masters and materials in their possession, custody or control. Defendants also must turnover all replicas of any JKP masters and materials in their possession to the U.S. Marshal and disclose the location of all masters and materials not in defendants’ possession.

Additionally, a preliminary court order requires International Video Innovation to turnover the 6,000 copies of DVD discs in its possession for which JKP is stating it previously paid, to the U.S. Marshal.

A gag order currently is imposed on all involved parties by a U.S. Bankruptcy Court judge.

“The case is under seal,” Attorney Todd Becker, who represents JKP, told XBiz.

The company originally filed for Chapter 11 in August, just as one of its creditors was about to foreclose on its property and seize its library of more than 250 films.

The North Hollywood, Calif., company, which maintains a variety of cable, satellite, video-on-demand and Internet operations, listed about 85 creditors, more than $3 million in liabilities and assets of $1.5 million to $3 million. Its larger creditors include film company Nasty Pixx, American Express Co. and AVN Publications Inc.

However, Becker said he believes JKP’s Chapter 11 case is “going fairly well,” adding that JKP is under new management and is in the process of entering into a new licensing agreement.

“I think Jill Kelly Productions will be able to successfully reorganize and pay off existing debts,” Becker said.

Becker said the case could come to a close within the next three months.

Becker also said JKP has plans to release new content, though an exact release date has not been set.

JKP was involved in a number of mergers and distribution agreements this last year, including signing New York-based Bizarre Video Unlimited to an exclusive licensing and distribution agreement, securing a Romanian television agreement with S.C. Folitexxx Video SRL, and inking a deal with Japanese distributors Max-A Co. and Japan Home Video Co. In addition, it rolled out its BLU and Collateral Damage XXX lines to expand its film library.

The company is named after adult actress Jill Kelly, who served as president under her real name, Adrianne D. Moore, and reportedly quit this year prompted by a pay dispute. Several reports noted JKP had been losing money over the last two years due to mismanagement.

The company also relocated all of its operations and sales force to a new warehouse in North Hollywood, from its Sunset Strip location in West Hollywood, Calif.