Hollywood payroll company Axium files for liquidation

[villager]

Source: LA Times

Hollywood payroll company Axium files for liquidation

By Kim Christensen and Andrea Chang, Los Angeles Times Staff Writers

January 9, 2008

A top Hollywood payroll services company filed a liquidation bankruptcy action Tuesday, a day after it sent its employees home and told them not to come back to offices in Los Angeles, New York, Toronto and London.

Axium International Inc., based at 5800 Wilshire Blvd. in Los Angeles, was one of three major companies that process payrolls for and provide related services to production companies, studios, trade unions and other industry clients.

The Chapter 7 petition, filed in U.S. Bankruptcy Court in Los Angeles, shed little light on why the company suddenly went belly up, except to note that it "lacks sufficient liquidity or other resources" to meet its financial obligations.

Axium executives told employees in e-mail messages Monday and Tuesday that the company had fallen victim to a "liquidity crisis" that forced it to cease all operations, said Randy Klinenberg, who headed RightsMax, the company's rights-management software unit.

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Read more: http://www.latimes.com/business/la-fi-axium9jan09,1,733565.story?coll=la-headlines-business

[aquart]

1. The strike?

[whatdoyouthink]

2. I agree

Must be to strike...i think you will see "other" support type businesses go out as well - its not Actors out there!!!

[Robbien]

3. Not really. The company was taken over by a hedge fund

raided and loaded down with debt and started staggering. The loss of business under the strike was just the proverbial last straw.

[aquart]

4. Ah. Thanks.

Just love them hedge funds. No chance of outlawing them, is there? And derivatives?