VidAngel, an editing service that filters things such as language, nudity and violence, is filing Chapter 11 bankruptcy according to their latest press release.
VidAngel CEO Neal Harmon said filling for Chapter 11 bankruptcy allows the company to reorganize and is a part of their current legal and business strategy.
Filing for chapter 11 bankruptcy allows VidAngel to pause their lawsuit with companies like Disney and 20th Century Fox in California.
“This strategy also allows us to continue our new lawsuit in Utah, where we are seeking a legal determination that our new filtering system is legal,” Harmon said
VidAngel plans on continuing to provide high quality content for its thousands of users. VidAngel currently provides their filtering services in users homes on streaming services such as Netflix and Amazon Prime.
“Remember, our new VidAngel system is growing rapidly,” Harmon said. “Our goal here is to reorganize the business around our new streaming model.”
VidAngel hopes to pause the lawsuit long enough to build revenue in their new system. Preparing themselves for If they lose the lawsuit, they can pay any damages to Disney.
“VidAngel can survive and reap a return for the many thousands of customers who invested in us,” Harmon said.