Henry Stone Music

TK Files For Reorganization – Billboard (1981)

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TK Files For Reorganization
NEW YORK – T.K. Productions Inc. Henry Stone’s label unit with ’70s success by such acts as K.C. & the Sunshine Band. George McCrae, Anita Ward, Peter Brown and Betty Wright, has filed for reorganization under Chapter XI of the Bankruptcy Act. The filing took place in U.S. Bankruptcy Court here, where the company listed its headquarters at 1790 Broadway. also the home of Roule11e Records. whose Morris Levy made an investment in the ailing company earlier this year. According 10 court papers , executed on July 17, T.K. listed assets of $359,203 .83 and liabilities of $7,947.598.34, with secured claims of $2,482,440.91 and unsecured claims of$5,465,157.43. In outlining its financial problems. Stone stated in the filing that the company has been unable to “sell its records as in the past” and that recording artists who are under contract have been “unable to produce a record which would be termed as a hit record.” However. Stone added that his business could “turn around to a very profitable business” with the success of one record. The 15 largest creditors listed are : Pickwick lnt’I, $741.939.17; Shelley Products, $688,853.31; Volunteer Record Pressing. $578,523.65; Piks Corp .. $443,760.69. Also, Record Merchandising. $397,997.96; PRC, $366,198.87: Album Graphics Inc., $332,978.05; Schwartz Bros.. $308,928.82: MS Distributor s, $284.822.51; Presswell Records , $220.162. I 5. Also, Flagship Bank, $ 160. 144.57; Florida Records, $ 145.296.63; VP$ Tape Inc., $ 137,335 .36; Queens Litho, $ 129.180.60; and Big State Distributing. $115,670.68.