Meddin Studios filed for Chapter 11 bankruptcy protection Monday to avoid the sale of the digital media production company’s facility via foreclosure auction.
The bankruptcy filing will allow Meddin to restructure its debt with its biggest creditor, Colony Bank, according to Meddin Principal and Creative Director Nick Gant. He said he expects Meddin to emerge from bankruptcy in “60 to 90 days.”
Colony Bank officials declined comment.
Meddin’s Gant blamed his company’s shortfall on two filmmakers with outstanding balances. Radioactive Giant, the maker of the movie “Killing Winston Jones,” and the independent maker of the film Enchanted Amore, owe Meddin approximately $320,000, according to lawsuits filed by Meddin Studios.
Meddin is seeking an additional $295,000 from Radioactive Giant for breach of contract.
“Business is normal, projects are out there. We just couldn’t rob Peter to pay Paul any more,” Gant said. “We’re not failing because of the community is or isn’t doing or what Meddin is or isn’t doing, we’re failing because people can’t pay their bills.”
Meddin’s bankruptcy filing lists nine creditors, only two of which are owed more than $8,250. Colony Bank, which holds the first mortgage on the Meddin property, has a claim of $1,181,569.81 while the Small Business Administration, which made its loan in conjunction with Colony, is owed $782,311.53.
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