So, as outlined in my last post about AMS bankruptcy, indy pub authors like me won’t be seeing a royalty check until June/July — pretty intense if this is what you live on, like I *did*. I’m not sure how I feel about the latest news delivered via the RE/Search newsletter, snip:
“The Latest at PGW (Fri Jan 12, 2007)
In a conference call yesterday, PGW clients were explained the details of the offer being formulated by Perseus Books Group [to buy PGW]. According to people familiar with the call, the rough outline of the Perseus plan includes an offer to pay 70 cents on the dollar of what clients are owed up to the date of the bankruptcy filing. PGW would continue operating as is for the next six months before clients accepting the Perseus offer would move over to their distribution facility.
One person familiar with industry bankruptcy proceedings explains that this scenario would both take the PGW debts out of the larger AMS creditor pool and potentially contribute some post-petition profits back to that pool as well. From everyone we’ve spoken to thus far, 70 cents on the dollar–particularly if it’s paid out anytime soon–is more than most clients could have hoped for given the circumstances. But other [worse??] offers could still be made.
There was no discussion of what would become of the PGW staff if this scenario is tendered formally and approved by the court and creditors. Perseus declined to comment on both thedetails of the offer and the staff issue. Today the bankruptcy court will hear arguments on whether publishers can reclaim inventory they shipped to AMS anywhere from 45 days prior to the bankruptcy.
PGW has told RE/Search that all accounts are frozen, presumably meaning: 1) no payments for that fall quarter (yet), 2) our books cannot be returned to us from PGW warehouse, 3) we can’t get out of our contract and seek distribution elsewhere (yet). Hmmm…”
/end RE/Search snip
Obviously, us authors, as usual in the MSM publishing world, have no power here. 70 cents on the dollar — then on this, think of the teensy percentage we authors get from publishers — your contract says 7% of sales, then you only get 70% of that, aaaargh… And it looks like publishers are starting to scramble for survival, from merging (like Perseus and Avalon), to copping a feel on the future of digital distribution (it’s cool; they still don’t get it).
For people like me and Rachel, it’s a tough time to be an author.
