Porn Valley- Xbiz.com reports that attorneys for Jill Kelly Productions are fighting a takeover by Michael and Frank Koretsky of IVD and Pleasure Productions. At stake are over 375 Jill Kelly titles, as well as 300,000 units of DVD inventory and $500,000 in accounts receivable. www.adultfyi.com/read.aspx?ID=10658
According to the story, the Koretskys are attempting to foreclose on a note that they purchased from Alliance Financial Capital Inc. three weeks prior to JKP's Chapter 11 filing in August. The pair purchased the debt for an undisclosed price through their company XGen LLC.
JKP currently lists about 85 creditors, more than $3 million in liabilities and assets of $1.5 million. Its larger creditors include Nasty Pixx, American Express Co. and AVN Publications Inc.
JKP attorneys are asking that the court deny the Korteskys request for the lien because "the property is obviously needed for an effective reorganization." JKP attorneys claim they've been paying the Koretskys $7,000 per month but the Korteskys claim they haven't been paid anything since JKP's Chapter 11 filing and that they are owed $453,000, including $13,000 in interest and $55,000 in late fees.
JKP attorneys contend the value of the 375 videos alone is far higher than the what is owed on the loan.
One witness to the Korteskys case is former JKP salesperson Jeff Krull. www.adultfyi.com/read.aspx?ID=9314
With the latest motion, JKP attorneys are seeking damages against XGen for its "clear interference with JKP's attempts to license its titles."
