They are looking for approval from their authors to sell off their catalog and name.
If they don't, they'll be forced into Chapter 7 Liquidation.
http://www.publishersweekly.com/pw/b...sset-sale.html
Quote:
After several years of financial struggles, the science fiction and fantasy publisher Night Shade Books is preparing to sell its assets to Skyhorse Publishing and Start Publishing. That is, if its authors will sign off on the deal.
The indie house sent a letter to agents and authors—excerpts of which have subsequently been posted online—in which it notes that, as an alternative to bankruptcy, a sale of assets to Skyhorse and Start would allow authors to get "paid everything they are due, as well as find a future home for their books.” The asset sale though, as the letter points out, hinges on a “sufficient number” of approvals from authors, who would also need to agree to “certain changes to their contracts.”
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Quote:
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...allowing the indie publisher to go bankrupt could be the worst result for authors. As the SFWA lays it out: “If [Night Shade files for Chapter 7], you may be unable to have your rights reverted. Your contracts could be purchased during the bankruptcy process by another publisher as an asset. That can mean purchase for pennies on the dollar. Bankruptcy could also mean that the contracts would remain in limbo during the bankruptcy proceedings.”
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I've bought quite a few Nightshade titles via Webscriptions so this hits close to home. They have good authors.
Hard to tell if the new contracts will be good for the authors but years of Chapter 7 wranglish over the rights won't be good for anybody.
(Via:
http://www.thepassivevoice.com/04/20...es-asset-sale/
Whoops! Missed the earlier similar thread.