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4Kids files for bankruptcy protection over Yu-Gi-Oh!

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They warned that it might come to this, and I guess it has. In order to stave off a lawsuit, 4Kids Entertainment has filed for bankruptcy protection under Chapter 11.

If you haven't been keeping up, TV Tokyo and Nihon Ad Systems sued 4Kids over several million dollars they were owed for secret distribution deals 4Kids had made with FUNimation and Majesco for the Yu-Gi-Oh! franchise. The two companies discovered the discrepancies after making an audit of the property's finances, something they were entitled to do under their agreement with 4Kids.

What's important about this new filing is that 4Kids has effectively staved off the lawsuit for a while, as all litigation is automatically halted so that the company can reorganize their operations. While part of 4Kids Entertainment's reason for doing this is likely to drag things out, they're probably using this time to try and find as much money as they can to make a settlement with TV Tokyo and Nihon Ad.

To spell things out a bit more clearly, TV Tokyo and Nihon Ad used a magic card to special summon Blue Eyes White Dragon on 4Kids Entertainment's turn, but before they could attack their opponent's life points directly, 4Kids played Swords of Revealing Light, halting all attacks for three turns.

On second thought, I think I just made things worse.

[via AnimeNews.biz]

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Bob Muir
Bob MuirContributor   gamer profile

Bob has been hanging around ModernMethod for years and and somehow writes almost everywhere, including Destructoid and Flixist. He was once lit on fire, but it's not as cool as you'd think. more + disclosures


 


 



Filed under... #4Kids TV #anime #legal mumbo jumbo #Money #TV Tokyo

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