Greetings HHSE Friends & Followers - HHSE senior staff members are all back from Cannes as of tonight - and we're ready to jump into a variety of projects, releases and corporate matters. One issue that has greeted our return are the two creditor debts represented by attorney Steven R. Davis, specifically Tribune Ent., and Accutrack. Apparently, during the Cannes market, Mr. Davis became restless after several phone messages to the office were not returned (we were unable to remotely retrieve voice mail messages from France, and most of the support staff remaining at the office were packing out a 10-pallet order of Dark Awakening DVDs for Walmart). In any event, with his calls going to voice mail and his messages being unreturned, Me. Davis felt that his clients were being ignored...So he filed (again - perhaps for the third or fourth time over the past two years?) a garnishment writ to attempt to get HHSE management's attention.
As communicated to Mr. Davis today, his timing was contemporaneous with HHSE's outreach to him on these two matters. You see, the successful results from Cannes, plus new production funding ventures, new theatrical servicing clients and a new cash-rich DVD wholesale agreement with Cinedigm have changed the course of HHSE. While we've certainly endured some rough cash flow and business challenges over the recent past, they say "that which doesn't kill us, makes us stronger," and the focus to implement working solutions and to launch new revenue rich ventures has placed the company back in solid form.
These small, old creditor issues can no longer be viewed as any sort of "material threat" - the company's current successes with theatrical servicing and international sales have provided a clean and new revenue stream that empowers management to accelerate the retirement of old debts related to the older (DVD-driven) business model. Not every small and old HHSE debt will be paid in full immediately (that would be bad cash flow management). But with respect to the current matter, a resolution is in process with Mr. Davis's clients, and the big ole "scary" writs will be set aside, just as all other writs have ALWAYS been removed in a timely manner.
Management feels that this is a very good time to be a HHSE shareholder. It would be a great time to get shares now "on the cheap" before film industry trade stories start running. So stay tuned! We love our longs, and our recent successes suggest that it's now a good time for the longs to start loving us back (again!). If success is measured by bottom line results, then we have arrived!