Delta Entertainment Corporation, based in

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, was a major supplier of music and video products. The company filed for bankruptcy in 2007.

History

Delta Entertainment Corporation released music under the labels of LaserLight Digital, Time-Life Music,

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Music, Yamaha, Legend and Style, Capriccio and Delta. On July 25, 2007, Delta Entertainment Corporation filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Court for the Central District of California, Los Angeles. At the time of the Chapter 11 filing, two major unsecured creditors were

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Disc Manufacturing, owed over $1,000,000, and the

Harry Fox Agency The Harry Fox Agency (HFA) is a provider of rights management and collector and distributor of mechanical license fees on behalf of music publishers in the United States. HFA has over 48,000 music publishing clients and issues the largest number ...

, which was owed over $300,000. The latter controls the issuance of all mechanical licenses for the reproduction of musical compositions, and collects the licensing fees on behalf of music publishers, effectively having a monopoly on this area of the music business. Uncredited
Delta Entertainment retains Barry Cappello in lawsuit against the Harry Fox Agency
Business Wire, March 25, 2003; www.allbusiness.com. From the time of the 2007 Chapter 11 filing until mid-2008, Delta was in the process of formulating a plan of reorganization, which ultimately settled on the liquidation of the company. One dimension of the liquidation was the sale of over 170 music licenses owned by Delta Entertainment.
{{Webarchive, url=https://web.archive.org/web/20110910182100/http://www.bkinvesting.com/Home_Page.html , date=2011-09-10 ; www.bkinvesting.com. Retrieved 09-01-09. Delta Entertainment's Chapter 11 filing had been preceded by a lawsuit, commenced in 2003, against the

, which at that time had ceased to issue any further licenses to Delta Entertainment. The two parties disputed amounts owed to each other. The Harry Fox Agency, based on an audit of the 1991-1997 period, claimed $15 million in unpaid royalties from Delta. The audit had commenced in 1996, and took four years to complete. Of the $15 million claimed, only $2 million represented allegedly unpaid royalties discovered through the audit. $6.1 million of the balance of the claim was "extrapolated" from what was found. In addition, $5.5 million in interest was claimed. Delta had countered with its own audit, whereby it contended that it had overpaid the Harry Fox Agency by over $1 million during the period under review.

References

Companies that filed for Chapter 11 bankruptcy in 2007 Defunct companies based in Greater Los Angeles