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3H Productions, Inc. (Transformers Fan Club)


Devil Mazinkaiser

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Well guys, I just got off of the phone with the paralegal, and this is what she had to say:

 

Basically, if you were a member of the first 3H Productions Club, you should have gotten a letter confirming this. You should have also received a bankruptcy notice appointing the trustee attorney assigned to the case, which is currently taking place in New York City.

 

Apparently there are over a thousand of us out there who were promised goods / services for our money that we spent. We are called "creditors" of the corporation.

 

In the next few weeks, the attorney will calculate the assets of the business owner, and decide if there is enough capital to satisfy the 'creditors', with our reimbursements. That should be decided in the next few weeks.

 

Once they decide if there is enough money to refund us, they will send out a claim reprt to all of us with instructions on how to file it with them. If it gets to that stage, you WILL be refunded your cash if you joined.

 

I know I said in a previous post that I would "get over it", but if I can help out my fellow fans who feel cheated out of $40, then that takes priority in my book.

 

Just FYI for you all....

 

Joe

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Another FYI, for those of you that did pay for the club and are "creditors," you are unsecured creditors and it is highly unlikely that you will receive any money, or if you do, it will be very little.

 

I don't specialize in bankruptcy law, but I am an attorney and this stuff should be easy to figure out. Basically, all the money that 3H has after it declares bankruptcy will first go to its creditors that are secured in some way. That means that they have to have some way to enforce payment of the money that is owed to them, usually through collateral that they now "own" or by taking an interest in whatever was loaned (an "I get paid first" clause in the loan). Again, I am not an expert in bankruptcy law, so take all this w/ a grain of salt, but what it amount to is that the bigger fish will be paid first and the smaller fish, the people that bought memberships and supported 3H, are going to take a beating and will be paid out of whatever is left over once the secured creditors are paid. It isn't a proportion thing either w/ everyone, including the companies that 3H worked with getting a percentage of what they paid in, the secured creditors (the other companies) will be paid in full according to their priority (something that even attys sometimes have trouble figuring out) and then the trustee will go down the list to the next tier and pay those creditors and so on, until whatever is left does get divided proportionally b/w the unsecured creditors, in this situation, the club members, who have the lowest priority.

 

What this will probably amount to is that the club members will be lucky to receive any money and again, what they do get might be a very small portion of the $40 that they paid originally. Hopefully, 3H doesn't have too much debt to pay off to other companies, but from what we all know happened, it is very likely that they owe many people a lot of money.

 

Also, declaring bankruptcy relieves 3H from all their promises of providing comics, figures, etc that came along w/ the club membership. Declaring bankruptcy is supposed to give the individual or company the opportunity to have a fresh start and therefore they don't have to honor any past obligations.

 

Sorry to tell everyone this, but I thought that it might at least be nice to hear the bad news from a fellow fan.

 

Hopefully the new club won't have any of these problems and honestly I kinda doubt that it will, Hasbro seemed kinda ticked that everything was so messed up and I would guess that they want to make sure that everything rules smoothly this time.

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Never joined the club however this would explain why no further Universe comics have been released in my area.

 

I only bought the second out of curiosity, and nothing more.

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Bankruptcy laws are strange things, at least here in the UK.  Small businesses regularly get declared bankrupt, screwing people out of a lot of money, only for the same person to start up another company and do exactly the same thing again - if you ask me, if you declare bankruptcy you shouldn't be able to own a business again!

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