Epic (fka Azoogle aka TrafficMarketplace aka Kinetic Social) is the gift that keeps on giving for some of the most interesting, albeit somewhat depressing news. If you haven’t been following the story, Epic Media Group, despite months of claiming financial stability, left all of its publisher hung out to dry without paying them, while at the same time transferring assets to another company in order to protect their money. After numerous reports from this publication about this issue, they decided to offer all their publishers a payment plan in which they would get a small part of their money owed, over time. This payment plan which called only for 1% payments initially, and then sometime in the near future *cough* a larger amount was highly derided not only by myself, but most of hte industry as a ruse to prevent creditors from suing the company and its new entity, Kinetic Social.
So what’s happened now? Well, as I predicted, Epic Media Group and Kinetic Social have refused to pay even the small amount they agreed on. Why? Their claim is that they don’t have the money, that their funds are dry and they can’t even do the additional 1% that they are owed. Whatever the excuse is, this was most likely their plan: get a bunch of people to agree on a payment plan, waive their legal rights and they screw them harder than before. I’m oblivious on how they expect to get away with this — but somehow most of the creditors aren’t doing much and even providing extra lube.
Seriously, can you believe the letter below?
My client has asked me to send the communication below to you all regarding the plan payments and events forward. I understand everyone’s frustration and Accord is doing everything it can to express your concerns:
One of Epic Media Group’s (EMG) assets that was expected to generate a return in the 4th quarter of 2012 has failed to pay on time. As a result, EMG will be unable to make a current payment in accordance with the plan which was offered as settlement in its debt to creditors (“plan”). The board is engaging in best efforts to resolve this situation, and is hopeful that it will return to being in a position to make payments in early Q1, 2013.
Thank you for your considered faith in resolving this through alternative means. EMG remains hopeful that a good outcome will result in this matter. We will advise if anything material changes and as soon as we are able to recommence payments under the plan.
Epic Media Group
From my discussions with management, they will do everything they can to catch up the scheduled payments in January. Fortunately, the longer term view for the March payout at this point is still looking confident.