Lombard, Illinois-based Big Idea Prods has announced that the company will go up for auction on October 28, 2003. As AWN reported on September 4, 2003, two days after Big Idea filed for bankruptcy, the company had announced that it had reached a definitive agreement with Classic Media LLC to purchase the companys assets for $7.5 million. However, under the bankruptcy code, the sale is subject to an auction in which other interested parties are allowed to bid for the companys assets.
Terry Pefanis, Big Ideas coo, said, The auction process provides a mechanism by which maximum return is created for all creditors. Big Idea Productions and our namesake VEGGIETALES brand continues to generate strong revenue and plays an important role in the entertainment marketplace.
Big Ideas financial advisor Scott Kohler at Skokie, Illinois-based Silverman Consulting will be handling the auction. A hearing on the bankruptcy and entry of the sale order, to whoever the purchasing party may be, will take place on October 30, 2003 at 10:30 am.
The crux of Big Ideas financial woes occurred when the company lost an $11 million breach of contract lawsuit with its original video distribution company Lyrick Studios Inc. The ruling stated that Big Idea broke a verbal agreement when it moved its mainstream distribution to Warner Home Video in 2001. Along with the lawsuit, the company also overextended its production slate while producing its feature JONAH: A VEGGIETALES MOVIE. In recent months, Big Idea has begun outsourcing production and streamlining fixed overhead costs. These changes allow the firm to continue to develop and own its creative content. For more information, visit www.bigideaproductions.com.