News

Public Media Works seeks bankruptcy protection

September 26, 2011

Just six months after Public Media Works rolled out its "Spot. The Difference," DVD kiosks, the company announced today that it has filed a voluntary petition under Chapter 11 of the U. S. Bankruptcy Code.

The company launched a pilot study in March to test the success of the project by deploying 25 kiosks, built by Signifi Solutions, throughout high-traffic outdoor locations in Riverside County, Calif. That was followed up by plans for a second round of rollouts in May.

Now, however, Public Media Works has "undertaken significant efforts to reduce its expenses including ceasing operations of its movie rental kiosks while developing plans to continue in its core business," according to a company press release. The company's inability to identify new sources of liquidity necessary to redeploy and market its kiosks have caused it to seek bankruptcy protection in order to better manage its operations through an orderly restructuring process.

"We believe that Chapter 11 is necessary to restructure the Company's outstanding debt, and establish a sustainable, long-term capital structure for the business," said CEO Martin W. Greenwald. "We have worked tirelessly during the past several months to develop our plans, address our existing financial obligations, and seek further funding. The company has concluded that it would be unable to secure the financing it requires in the absence of a Chapter 11 plan of reorganization which, if successful, can clean up the company's balance sheet."

Greenwald said the goal is to emerge from Chapter 11 as soon as possible and that he's on working on securing a debtor in possession (DIP) loan to allow it to maintain operations at a minimal level while it develops a Plan of Reorganization to present to creditors and the court for approval.