Note: I am not a
bankruptcy lawyer, and I am not your lawyer. Please consult an attorney for
advice relevant to your situation. This post is for informational purposes
only.
The Aftershock Comics bankruptcy may be coming to a resolution. Recently, a proposed plan to exit bankruptcy was submitted to the court, and it has been sent to those to whom Aftershock owes money. Those who are eligible can vote in favor of the plan or against it. However, if you are not in favor of the plan, you must send back the form stating such by May 2, 2025. There is not much time to do so, and you should follow the instructions set forth in the documents.
From what I’ve seen of the plan, and as admitted in the plan documents, it deviates from standard bankruptcy repayments. Aftershock’s counsel believes this plan offers the best chance for the company to continue operating and to repay those to whom it owes money.
It appears Aftershock is putting aside a small amount of money ($40,000) to issue pro rata payments to creators upon the plan effective date, and then they will continue making payments over the next 42 months until the amounts are repaid, supposedly with interest.
For creators, you should verify the amounts Aftershock states they owe you, and be aware of how they plan to repay you. You can verify how much money they claim they owe you on Exhibit 2 of the plan, and you can also verify if they intend to keep control over your publishing agreement by checking the assumed contracts on Exhibit 8.
If the plan is approved, hopefully creators will be compensated. If it is not approved, then Aftershock will either have to come up with an alternate plan to exit bankruptcy or liquidate the company. It should be noted, however, that even if the plan is approved, there is a chance creators may not receive their payments. If the company is not able to generate enough money to pay its debts and continue operating, Aftershock may have to file for bankruptcy again, and then creators will likely not receive anything. Further, they inserted language in the plan stating that they are continuing to evaluate the assumed contracts and reserve the right to revise the schedule of assumed contracts, which could impact creators if the contracts are rejected.
If you received the documents, please review them as soon as possible, and consult with your attorney if there is anything you do not understand. If you do not want to approve the plan, then you would need to act quickly.
