Gen Con Files For Chapter 11

Heartless Gamer writes to tell us that Gen Con LLC announced late last week that they have filed for Chapter 11. This move will not affect the still profitable Gen Con Indy event which will still happen August 14-17, 2008. "This action became necessary as a result of significant unforeseen expenses associated with attempts to expand its core business to encompass externally licensed events. [...] The protections afforded by Chapter 11 will allow Gen Con to further its efforts to address its liquidity needs, preserve value for its creditors and explore strategic alternatives for the business." Evan writes to add that this is the result of LucasFilm suing GenCon.

Comments

This is a result of Lucasfilm litigation

[Obiwan Kenobi]

Just FYI, this filing is a direct result of Lucasfilm suing Gen Con for a lot of deception regarding "Celebration IV" that occurred last year.

As taken from this story on TheForce.net, here is a summation of the charges:

1. Gen Con failed to uphold its legal obligations in terms of financial reporting, accounting and payments to Lucasfilm ($500,000 in damages)
2. Gen Con did not give auction proceeds to Make-A-Wish as they had agreed to do ($150,000 in damages)
3. Gen Con did not give Lucasfilm their share of the auction proceeds ($150,000 in damages)
4. Gen Con did this all unjustly ($150,000 in damages)"

Re:This is a result of Lucasfilm litigation

[poetmatt]

Go look at groklaw for SCO's case. SCO did it intentionally, however, it's not a delay tactic. It's common bankruptcy law. Cases are put on hold unless there is a reason pleaded to the bankruptcy judge that the BK (bankruptcy) judge accepts to allow it to go forward...this in itself can be allowed at times to determine amounts owed.

However, note that all BK is allowed with the expectations to both a: get out of BK as fast as possible if possible, and b: if not possible, liquidate/pay off your creditors to the fullest of the assets that the bankrupt company has(the total liquidation kind of bankruptcy...whether that's 11 or 7, I forgot). Bankruptcy moves forward very quickly. If you stall, they can force you to appoint people to help you get back on your feet (and manage your money) well enough to get out of BK. This is not something about to be delayed multiple years. Additionally, once you hit BK, you cannot spend any money without court approval at all. So their finances are going to be open regardless of whether lucas is actually factual about the "we agreed to see their financials and they aren't showing us".

What's more likely is either a: Gencon's pulling a fast one or b: Gencon never read over a ton of legal fine print that fucked them over bigtime...there are ways to fight this in court, it's not common or easy. However, I don't get how Lucas is suing for anything with make a wish foundation. They don't represent them, and don't own them, so thats basically all bullshit. If Gencon gets a smart lawyer regardless of what they did, they'll have that dropped before it even comes to trial, as well as any false evidence.

IANAL but I read a lot on law, and study it (and bankruptcy books - family members are credit analysts) quite a bit.

Re:This is a result of Lucasfilm litigation

[Afell001]

A friend of mine went through a nasty divorce a few years back, and his wife was able to hold up the divorce proceedings for nearly a year by filing for bankruptcy. This made it so that she was able to collect separate maintenance checks (half his paycheck, since she "conveniently" quit her job a couple months before she filed) as well as live in the house he was paying for and forcing him to move out. Since the house and mortgage was in both their names, it was also tied up in the bankruptcy, which left him in legal limbo when he tried to find another place to live (not many landlords will rent to someone whose house is tied up in bankruptcy and has several liens against it). Needless to say, he paid through the nose to finalize the divorce. She, on the other hand, took several trips to Vegas and at least one trip to the Bahamas with her new boyfriend, while he was living at my house eating PBJs and ramen, and working like a dog to keep his good credit from being completely destroyed. Yep, I know full well about this tactic. It's a nasty way to stave off any kind of court proceeding until it is resolved. My friend ended up paying half his income for a year and a half (roughly about $150,000) just because of it, and then spent most of the rest of his income paying for lawyers, child support and making payments on a house he couldn't live in. Be careful who you marry, is all I can say if you are looking for a moral to this story.

Re:Anyone else hope

[Peter Mork]

As much as I love The Safehouse and its back door, you do realize that GenCon is called GenCon because it belongs in Lake Geneva, right? I fondly remember MECCA as much as the next guy, but to equate that location with GenCon denies the history of the event.

Re:Why am I not surprised?

[Irish_Samurai]

I thought Richard Garfield created magic.

Re:They aint seen nuthin yet

[mlund]

Peter Adkison owns GenCon.

Hasbro owns Dungeons & Dragons.

Hasbro bought Peter Adkison out of Wizards of the Coast (who owned D&D) over half a decade ago.

Re:Why am I not surprised?

[91degrees]

There are plenty of small non-profit conventions that aren't.

Re:Anyone else hope

[kria]

Um, GenCon Indy is the thing that keeps the rest of GenCon's failures running. It's been hugely successful in Indy, and from what I understand the locals are much friendlier. I can't attest to friendlier, having never attended elsewhere, but I can definitely say they are friendly. Restaurants tuning tvs usually on sports channels to sci-fi channel and decorating with old hall banners, special pins over at Hard Rock, that kind of thing. I had heard that things were somewhat less amicable in the old location.