MoviePass Heading For Bankruptcy

If it’s too good to be true, it probably is.

As proven again by the press release from MoviePass that “notified its subscribers that it would be interrupting the MoviePass™ service for all its subscribers effective September 14, 2019, because its efforts to recapitalize MoviePass™ have not been successful to date.”

moviepass_future_andrew_ringer_illo.0

When a company borrows heavily to support a financially unsound business model, this is what typically happens.

So, the company’s board of directors is now attempting to identify, review and explore all strategic and financial alternatives for the Company, including a sale of the Company in its entirety, a sale of substantially all of the Company’s assets including MoviePass™, Moviefone™ and MoviePass Films™, a business reorganization or one or more other extraordinary corporate transactions, together with the assumption or settlement of the Company’s liabilities in connection with any of these alternatives.”

In other words, bankruptcy.

Subscribers who have pre-paid probably will never see their money or another movie.

https://www.businesswire.com/news/home/20190913005496/en/Board-Directors-Helios-Matheson-Analytics-Forms-Strategic

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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