Former Videology seeks approval of $2.5 million D&O claim settlement

By Caroline Salls

Pittsburgh, April 24 – VG Liquidation, Inc., formerly Videology, Inc., and the official committee of unsecured creditors appointed for its bankruptcy case requested court approval of a $2.5 million settlement reached with several former officers and directors, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The motion said the committee issued a demand for payment of at least $3.5 million on Oct. 25, 2018 that outlined a number of causes of action against the directors and officers arising from their interaction with the Videology debtors.

Specifically, the committee asserted claims related to the directors’ and officers’ approval of some aspects of transactions with pre-bankruptcy lenders, negotiations with a major creditor and other vendors and management and oversight of company’s the sale process.

Under the proposed settlement, an insurer will pay $2.5 million for the benefit of the VG Liquidation estate to resolve the claims.

A hearing is scheduled for May 15.

New York-based Videology is a software provider for converged TV and video advertising. The company filed bankruptcy on May 10, 2018 under Chapter 11 case number 18-11120.

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