Seagull Entertainment is preparing to fight involuntary bankruptcy proceedings brought against the company last week by several creditors and former production staffers on Seagull’s syndie strip “Hollywood Connection.”
“There is no merit to the (Chapter 7) petition, and it will be defended vigorously,” Seagull chairman and co-CEO Henry Siegel said. Seagull attorneys will file a response within the next week to the petition lodged July 22 in U.S. Bankruptcy Court for California’s Central District.
About 50 staffers hired on a freelance basis to work on “Connection,” Seagull’s home shopping/celebrity interview show, claim they haven’t been paid in more than a month. Siegel said the bulk of the $500,000-plus claim filed against the company stems from “a bona fide dispute” with an individual who had been a consultant to the company but recently was fired.