Home > News > Penthouse Buys Jill Kelly Assets at Auction • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Penthouse Buys Jill Kelly Assets at Auction

Penthouse Buys Jill Kelly Assets at Auction
Get XBIZ News
Apr 17, 2006 5:08 PM PDT    Text size: 
WOODLAND HILLS, Calif. — Outbidding Playboy, New Frontier Media and XGen LLC, Penthouse agreed to pay $1.765 million at a bankruptcy court auction for the major assets of Jill Kelly Productions.

With the acquisition, Penthouse may become a major player in the adult DVD arena. The company also announced earlier this year that it is building a 50,000-square-foot production studio in Glendale, Calif.

JKP’s assets included more than 200,000 burned and packaged DVDs as well as 65 unreleased masters, but there was some doubt about the value of the cache due to lingering 2257 concerns.

Philip Starr, who took over as CEO after the beleaguered company filed Chapter 11 bankruptcy, stood up in court and admitted that even he had no idea what the assets are worth.

Lawyers for Penthouse and Playboy asked for a continuance in an attempt to clarify the 2257 issues, but Judge Kathleen Thompson denied their motion, stating, “You’re going to buy what the debtor has.”

However, Aram Ordubegian, counsel for a group of unsecured creditors, told XBIZ, “It’s our [the unsecured creditors] understanding that all 2257 documents are all properly maintained.”

Penthouse also may have to strike a separate deal with Kelly because, although she forfeited any claim on the copyrights to the material sold at auction, she personally retains the trademark on her name.

Kelly told XBIZ that she already has had conversations with Penthouse.

JKP’s only secured creditor, XGen LLC, was offered the first opening bid at $725,000.

Aram Ordubegian, counsel for a group of unsecured creditors, had earlier told XBiz that he believed JKP’s assets far exceeded $725,000 and that he was hopeful other companies would outbid XGen, which is owned by Frank and Michael Koretsky, who also own International Video Distributors, Pleasure Productions and Whipsmart Toys.

While there is no guarantee that all of JKP’s unsecured creditors will be paid the money they are owed — XGen has roughly $500,000 in secured claims that must be paid before any of the other creditors get a dime — Ordubegian told XBIZ that the $1.765 million winning bid is “a spectacular outcome for the creditors.”

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

BUSINESS ANALYSIS

Adult Biz Faces More Obstacles Past Prop. 60 Battle

On Feb. 1, I completed 365 days as the Free Speech Coalition’s executive director. It was a turbulent first year, and when I received the 2017 XBIZ Industry Leadership Award I was startled, humbled... More »

Ad Networks: A Look at Compliance Issues

Among the major concerns of online marketers when evaluating advertising creatives are the return on investment, click-through and engagement rates, (re)targeting and opportunities for micro-tuning monetization.... More »

Ad Networks: Maximizing Precious Time and Resources

For traffic-savvy adult website operators and marketers, buying ad space and premium placement on select sites is a proven method for attracting audiences. This has traditionally involved studying a site’s... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

EXXXOTICA Denver

Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!