WOODLAND HILLS, Calif. — It's been more than six years since Jill Kelly Productions filed Chapter 11 bankruptcy, but the final decree closing the case was just signed off two weeks ago.
In the end, after accounting and legal fees were added up and paid out, only $109,000 remained to pay off unsecured claims, according to the final decree by the trustee in the case.
The decree stated that numerous secured claims were disallowed, including those from adult studio X-Gen LLC and International Video Innovations, as well as Canyon Capital Marketing Inc., American Suzuki Financial Services and Chrysler Capital Marketing Inc.
X-Gen, owned by Frank and Michael Koretsky, who also own International Video Distributors, had about $500,000 in secured claims.
Shortly after the Chapter 11 filing in 2005, Penthouse agreed to pay $1.765 million at a bankruptcy court auction for the major assets of Jill Kelly Productions. Those assets included more than 200,000 burned and packaged DVDs, as well as 65 unreleased masters.