Thousand Oaks, California-based multimedia specialist TMM Inc is sheltering under Chapter 11 bankruptcy protection after a debt was called in by a major creditor. The company offers a product called SoftVideo to CD-ROM publishers and multimedia developers, which uses fractal video compression licensed from the developer of the technology, Iterated Systems Ltd, Norcross, Georgia. TMM says that creditor Gregory Martini (Intram Investment), had attempted to effect a forced sale of TMM’s assets, at which point the company sought protection under the US Federal bankruptcy code. According to TMM, Martini had proposed an equity financing agreement giving himself and the Canadian financing group 60% of the company’s shares outstanding. TMM responded by offering 7.5% of common stock to Martini to waive certain rights claimed by him. He refused. TMM is seeking capital from the entertainments and leisure industry to underpin its cash flow. The company says that since Comdex in mid-November, it has been involved in serious discussions with numerous major multimedia technology and telecommunications companies to obtain sufficient financing to allow for a full payment of all existing debt and the growth envisioned by management. Word is that it hopes to be out of Chapter 11 by the tail end of January.
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