VidAngel, the company that offered its users “clean” versions of existing movies, said today that it has filed for Chapter 11 bankruptcy protection. CEO Neal Harmon announced the move, saying, “It’s an important step to protect our company — as well as its creditors, investors, and customers — from the plaintiffs’ efforts to deny families their legal right to watch filtered content on modern devices.” Read his full statement below.
VidAngel offered the cleaned-up version of films by cracking the encryption on discs, then selling and repurchasing the content in transactions with consumers who specified edits — in effect, the sale and re-purchase created a cheap, family-friendly rental of films.
Here is Harmon’s full statement:
“We have filed a petition for relief under Chapter 11. It’s an important step to protect our company—as well as its creditors, investors, and customers—from the plaintiffs’ efforts to deny families their legal right to watch filtered content on modern devices. It also gives us breathing room to reorganize our business around the new streaming platform, promote and perfect the new technology, and seek a legal determination that the new system is fully legal and not subject to the preliminary injunction entered in California.
“It’s important for our fans to know that VidAngel will continue to offer our filtering service, and to add new content and new customers during the reorganization process. We are also actively hiring additional engineers to further accelerate the continued development of VidAngel. Our original series, Dry Bar Comedy, is exploding and has had over 16 million minutes viewed in the last 7 days. Our customers can filter movies on Amazon, Netflix, and HBO on Amazon, and we still have millions in the bank to fight this all the way.”