SALT LAKE CITY — Months after being ordered to pay $62.4 million to Disney, Fox and Warner Bros. for copyright violations, VidAngel has filed a plan in court to pay the judgment and recover from bankruptcy.
In a news release issued on Thursday, the Utah-based company says it’s reorganizing “due to rapid growth over the last year.” The plan was submitted in the United States Bankruptcy Court for the District of Utah.
“Bankruptcy law was established by Congress to give companies a chance to rehabilitate, get back on their feet, pay their creditors, and continue to move forward. VidAngel has a reorganization plan that does just that,” VidAngel trustee George Hofmann says in the news release.
The company’s revenue continued to grow over even after the June 2019 judgment that felt “insurmountable,” Hofmann said.
VidAngel is expanding “into new lines of business,” he added, saying financial experts have said the company’s growth makes paying the damages “feasible” with the right plan.
“I look forward to the court confirming a plan so that VidAngel can emerge from bankruptcy, pay its debts and focus on growing a great business,” Hofmann noted.
VidAngel will pay off the $62 million over a 14-year plan, according to the proposed plan.
“We’ve gone from avoiding threats of a shutdown to being able to say, ‘just send us the bill,’” VidAngel CEO Neal Harmon said in the news release. “VidAngel is turning a page in its history, and we believe that we now are moving forward stronger than we’ve ever been. VidAngel remains committed to helping you, the viewer, make entertainment good for your home.”