It seems a quiet year is ending with quite a bit of news. AfterShock Comics has filed for chapter 11 protection in the District of Central California. The comic publisher/media company has listed assets of between $10 million and $50 million and liabilities of $10 million and $50 million. It has an estimated 200 to 999 creditors according to documents.

Also mentioned in the filing is bankruptcy case for Rive Gauche Television which is listed as an “affiliate”. In 2020, AfterShock and Rive Gauche merged launching AfterShock Media.

The largest claim is to AS Comics LTD for a “distribution agreement” for $514,326. Also included is Imprimerie L’Empreinte who is one of the company’s printing services for $398,887 and Tri Vision Int’l Inc which has to do with importing for $118,399. Also of note, beyond the creators listed, is San Diego Comic Convention which is owed $17,000.

Chapter 11 bankruptcy doesn’t mean the company is going out of business. Instead, it’s a “reorganization” that allows the business to pay creditors over time. Of note is the letter included at the end of the filing from CEO Jon Kramer that’s dated September 12, 2022. This would indicate this has been in the works for at least three months.

In recent weeks there’s been a lot of chatter of creators and others not being paid or being paid late by publishers, AfterShock being one named. With this Chapter 11filing in the works for some time, it makes AfterShock’s recent statement about the situation a bit more muddied:

The truth of the matter is that the company is addressing late payments as outstanding funds owed to the company come in. There are no non-payments. Everyone who is owed money will be paid. We recognize our obligations and consider creator compensation our number one priority. We apologize for this situation and are making our best efforts to rectify it as quickly as possible.

Levene, Neale, Bender, Yoo & Golubchik L.L.P. have been retained as representation as bankruptcy counsel by AfterShock.

Here is some of the filing. We’ve removed the listing of debts as it includes the addresses of creators.

Update: AfterShock has released a statement.

After much deliberation, AfterShock Comics LLC has voluntarily filed a petition for protection under Chapter 11 of the United States Bankruptcy Code to enable the Company to restructure its senior secured facility as well as being in a position to secure additional financing to continue to operate its business.

The intent of this decisive action, among other considerations, is to allow the Company to maintain operations in the ordinary course including, but not limited to, paying employees and continuing existing benefits programs,, upholding and following through on commitments to contracted creators, as well as vendors who supply goods and services related to marketing, merchandising and advertising. AfterShock will continue to operate, publish and market comic books and graphic novels to supply to direct market retailers and mass accounts through its distributors in accordance with all federal, state and local guidelines.

We regret the inconvenience this has caused to those we work with and may cause in the near future. However, we believe that going forward this will allow us to best position the Company for long-term success.