Dave
 

Steve,
I believe that they are the main service provider and installer for Marcus in the nidwest. I'm not sure about other chains though.

I haven't heard about this yet, Mark. What do you know? MTS certainly did not have the best reputation for their theater installs and service, butthey certainly employ(ed) some knowledgeable folks.
 

As far as booth supplies, we've been buying from CPI for over a year now anyway. No change there.
 

Josh
 

Ayotte was really not interested in talking to me. I was greeted with a scowl on his face when he was waltzing down the corridore with his nose curled up like Lady Astore at the Paris during Sho-West 2002. His reaction looked like he never saw me, but I know different. I thought it was funny.

In my opinion, Lloyd Lano and Dan Jorgenson were very good technicians. I wish them well. Dewey White, if you are a lurker, I want to thank you for the many things you taught me in this industry. Ron Bendlin, thank you for the good service you gave me when I purchased equipment form MTS.

There was no money in it anymore, at least not with that company. I don't think they lost money on it, but I do think there was not enough money in it to make it worth the effort.

When I worked for that company, Rafnson told me the sum of the accounts that were collectable. It was nothing to sneeze at, and some were very slow payers. With all respect to MTS, I will not cite the value Rafnson cited. But since the downturn of the industry, I can understand why he wanted to dump the service work.

MTS is a profitable company, but Rafnson had to change his strategy to keep it profitable. I certainly cannot fault him for that. I would do the same as he or anyone else would when the handwriting on the wall popped up a bunch of red flags. Rafnson is no dummy......He is, for the most part, a good business man. I think he might have been even better if he would have taken a field trip to see what the real world was like in the projection booth. Like most executives, he views the bottom line, and nothing more.

His company is profit driven. Rafnson has to pay his bills, too.

I also hope the good techs from MTS that get together can finally run things on their own the way they should be...and that is easy, all they have to do is good quality work. I also hope they join up here and start posting.
Mark

------------------
"One man can make a difference."
 

I went Bankrupt, by my choice to shut the buisness down in a hurry due to a nervous condition I developed, but after 18 years of it, work on over 35 feature films and installation of well over 300 booths! Not bad for a small shop is it? When you come down I'll show you the photo albums.
Mark

Here are the facts relating to MTS "Folding":

MTS is NOT going out of business, it is NOT leaving the film business or reducing its prominence there, it IS continuing to support D-Cinema technology and the SMPTE DC-28 standards effort. We are undergoing a significant management restructuring, due to the decision by some long time staffers to go on to new endeavors.

The decsisions by Mel Hopland, Phil Rafnson, and John Ayotte to move on is a personal one, and will not be reviewed here. The remaining team, including me, Jerry VanDeRydt, Mike Granger, Mark Collins, Paul Brenkus, Emil Poggi, Dan Eittreim, and the rest of the customer service, CAD, engineering, project management teams remain here. We are committed to continuing the MTS legacy of industry leadership.

We are reevaluating and, in some cases, reducing our contract service committments to allow local independents to compete for the business in the Twin Cities area. We continue to negotiate to provide similar services for certain clients. This reduction has caused us to notify certain technicians that layoffs were likely, and some have chosen to leave, while others are sticking it out to see what finally happens with our overall service effort.

Just like many other companies in this business, we have experienced some cash flow problems resulting from client bankruptcies, excessive overhead, and depressed margins. The new CEO, Charles Daugherty, has taken all of the necessary steps to fix this problem, and we are now leaner and healthier than in a long time. MTS intends to continue to lead this industry in film, digital, and any new technology that comes along.

We support Film-Tech and hope that readers will allow for the existence of some disgruntled individuals posting to this thread who have felt "ill treated" by MTS in the past. Any company in business for over 50 years will have some similar situations in its past - we wish those individuals the best, and hope that all of you will read our side of the story and make an objective decision about the future of the industry and MTS role in it.

Thank you, Brad for the opportunity to place our side of the story in front of your members.

P/S I hope this doesn't duplicate, as my laptop locked up on the first version of the post, if so, I apoligize.

Dave Lund
 

Dave
 

Welcome! Hope that you and the others at MTS continue to participate in Film-Tech, especially in the frequent discussions of D-Cinema.

You didn't specifically mention Curt Behlmer. I assume he will continue as Chairman of the SMPTE DC28 Digital Cinema Technology Committee? Is he "officially" with MTS, or does he work out of Soundelux Entertainment corporate?

------------------
John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Research Labs, Building 69, Room 7525A
Rochester, New York, 14650-1922 USA
Tel: +1 585 477 5325 Cell: +1 585 781 4036 Fax: +1 585 722 7243
e-mail: john.pytlak@kodak.com
Web site: http://www.kodak.com/go/motion

I apologize for not mentioning Curt. He is, in fact, continuing in both his MTS/ATG role and as Chair of DC-28. Curt brings a dimension to this company that few others can. He has an enviable reputation in Hollywood, the creative/technology community, and among equipment vendors. Curt served as Senior VP of Post Production at Warner Bros. prior to coming to Soundelux/MTS. He has chosen to stay on in his capacity here at MTS and is the driving force behind our Advanced Technology Group and our D-Cinema efforts.

Dave Lund
Senior Vice President
Technical Operations
Media Technology Source
 

It's good to see a dignified, informative and public response to this rumour.
 

Welcome aboard!

Thanks for the help, it was a great service in "calming" the waters so that my reply could be posted.

We here at MTS strongly support and utilize Film-Tech. If I or my staff can be of service, feel free to contact me via my E-Mail, which you have as part of my registration. We have access to a wide variety of industry sources, and will attempt to provide members with answers to difficult or unique questions. Unfortunately, my duties keep me from spending as much time as I might like on the forums, so if you find an appropriate issue, feel free to contact me via E-Mail.

Dave
 

Almost didn't recognize you in the suit...

Pat
 

------------------
Bill Purdy
Component Engineering
 

If the current rumor is true that they did indeed close the doors under Chapter 7, then MTS committed another serious error. The big lie. They new about it, and they knew they lied.

Here is an excerpt from bankruptcy laws:

A straightforward bankruptcy proceeding generally takes 4-6 months. In Chapter 7 bankruptcy, nonexempt assets are sold to pay creditors while most debts are discharged.

Personally, I have more respect for a company that will level with us and tell us the truth up front than to try and cover it up with a big lie. Shame on them.....

If MTS has closed just temporary, then I will apologize. If it is a permanent closure, then they got what they deserved. If it is a chapter 7, I don't think they will ever re-open. There won't be anything left to trade for a hamburger.

And now the vendors got the shaft! Totally unfair to the vendors who trusted them.

With the latest information I received, there will be no apologies from me to them.

After reading the Chapter 7 laws, it looks like a very complicated and time consuming procedure. I don't think this all could be done in 46 days before the order is granted.
.....................................................................
Introduction:

The following is an outline of select areas of bankruptcy law which are significant as you contemplate a filing under Chapter 7. Often, someone who considers bankruptcy is unaware of the nuances of bankruptcy or certain creditors' rights in bankruptcy. You should be familiar with some of the applicable provisions as you prepare for filing. What follows is not, by any means, an exhaustive review of bankruptcy law; nor does it fully explain each provision of the bankruptcy code or rules which might apply because each individual's situation is unique and sometimes unanticipated events occur; however, this overview will provide you with broad guidelines so that you may be comfortable with your decision. I will begin with an outline of basic procedures in Chapter 7 case and conclude with a discussion of various Chapter 7 pitfalls.

Basic Procedure

1. Upon filing, you will be required to file a sworn list of creditors, a schedule of assets and liabilities, a list of exempt property, a schedule of current income and expenditures, a statement of your financial affairs and a statement of intent regarding consumer debts secured by property of the estate. You will also be required to surrender to the trustee all property of the estate. 11 U.S.C. 521. The order of relief is granted when you file. What this means, among other things, is that an automatic stay is triggered, prohibiting creditors from pursuing you or your property outside of the bankruptcy proceeding.
B. The clerk of court will give notice of the bankruptcy to your creditors. 11 U.S.C. 342.

C. There will be a meeting of creditors called to question you about your debts and ability to pay. The U.S. Trustee calls this meeting and you are required to attend. The judge may not question you at this time. Other creditors and the trustee may question you. Unlike a trial, your attorney may not "object" to questions in a formal sense. It is an open opportunity for creditors to question you and you are required to respond in good faith. 11 U.S.C. 341.

D. A creditor of the trustee assigned to your case may object to your listed exemptions within 30 days after the meeting of creditors.

E. A creditor must file a proof of claim within 90 days after the first date set for the meeting of creditors. At the end of the case, if a surplus remains after all of the claims are paid in full, the court may grant an extension of time for filing of claims not filed during the initial 90 day period.

The trustee may object to any claim.

F. An objection to your receiving a general discharge of all of your debts must be filed by the trustee or a creditor within 60 days following the first date set for the creditors meeting If no objections are filed, and if no motion to dismiss is pending, the court will ordinarily grant a discharge upon expiration of the 60 day period. Bankruptcy Rules 4004 and 1017; 11 U.S.C. 727.

G. A creditor may object to the dischargeability of a particular debt at any time if the debt: (1) is for a tax or customs duty; (2) is not listed in the schedules so that a creditor could file a proof of claim; (3) is related to alimony or child support; (4) is a government fine or penalty; or (4) is a government insured student loan. Any student loans guaranteed or insured by the government will not be dischargeable. This means that you will continue to be liable for the payment even if you file bankruptcy.

A creditor may object to the dischargeability of a particular debt only within 60 days of the first date set for the meeting of creditors, if the debt: (1) is a consumer debt created close to filing; (2) is a result of fraud; (3) is a result of a wilful and malicious injury to a person or property of another. Bankruptcy Rule 4007; 11 U.S.C. 523.

Debtor Pitfalls

The debtor's goal in any Chapter 7 is to have as many debts discharged as possible. The general rule is that all debts created before the bankruptcy filing are discharged. Discharge destroys any person liability you may have on a claim or debt. (Discharge will not destroy liens; liens survive the bankruptcy.)
There are some very significant exceptions to the general rule that all debts will be discharged. As stated above, a creditor can try to have his claim excepted from discharge pursuant to the provisions of 11 U.S.C. 523. If the claim is not discharged, the debtor continues to be responsible for its payment; obviously, this could have severe consequences to the debtor seeking a "fresh start" which is the very purpose of the Chapter 7 filing.

There are ten categories of debt excluded from discharge under 523. These fall into two areas: debts that are not dischargeable due to the wrongful conduct of the debtor and debts that are not dischargeable due to public policy.

The debts not dischargeable due to the debtor's misconduct include those created by intentional torts, fraud, larceny, embezzlement, fiduciary violations, and drunken driving. The debts not dischargeable due to public policy include alimony and child support, taxes and customs duties, governmental fines, penalties and forfeitures, educational loans, unscheduled debts and certain debts surviving a prior bankruptcy case. A claim must fall within one of these exceptions to be found non-dischargeable.

To prevail on a fraud exception, the creditor would need to show that there was a false, material representation of fact made by the debtor that the debtor knew was false at the time he made it, made with the intention of deceiving the creditor. Some courts have held that when a credit card is used, the debtor impliedly represents that the debtor has the ability and intention to pay for the goods and services charged. Those courts have therefore found that some credit card debt is non-dischargeable under the fraud exception.

This is not the only potential problem that can arise with credit card or similar debt. 523 also provides that there is a presumption that certain consumer debt created right before filing a Chapter 7 is non-dischargeable. The presumption of non-dischargeability will apply if the debt is a consumer debt for so-called "luxury goods or services" incurred or within 40 days before the filing, owing to a single creditor aggregating more than $500. Further, the presumption of non-dischargeability will apply if there are cash advances made by a creditor for more than $1000 that are extensions of consumer credit under an open end credit plan within 20 days of filing bankruptcy.

Luxury goods and services are not defined by the Bankruptcy Code and the determination of same will be contingent upon the facts and circumstances of each case. I can tell you that courts have characterized such items as a person computer, coffee maker, floral arrangements and three-wheel recreational vehicle as "luxury" items.

Any credit extended based on false financial statements is subject to exception from discharge. Statements made in the financial statements have to be materially false with the intent to deceive the creditor to fall within this exception. Note that a credit application should not qualify as a "financial statement" if it does not require a disclosure of debts.

It is crucial for the debtor to include all creditors in his schedules filed with the court. If a debtor knows of the creditor and does not schedule him, the creditor is denied participation in any distribution; to protect the creditor from this type of problem, the code provides that unscheduled claims may be non-dischargeable.

Debts created by willful and malicious injury will also be excepted from discharge. These types of claims arise from intentional actions by the debtor, done with malice which causes damage. It is important to note that ordinary negligence claims are dischargeable. A plaintiff with a personal injury claim would need to allege significantly more than simple negligence to have his or her claim deemed non-dischargeable in the bankruptcy court.

Not only may a single creditor attempt to have a particular debt found non-dischargeable pursuant to 523. Chapter 7 debtors also need to be aware that, pursuant to U.S.C. 727, upon motion by the trustee or a creditor, the court may disallow a final discharge of all debts, of whatever nature, if the debtor, among other things:

(1) destroys or conceals his property within one year before filing or after the date of filing, with the intent to hinder, delay or defraud a creditor;

(2) conceals, destroys, falsifies or fails to preserve records of his financial condition;

(3) knowingly in a bankruptcy case makes a false account, oath or claim;

(4) gives, offers, receives, or attempts to obtain money, property or an advantage for acting or forbearing to act;

(5) withholds from an officer of the estate records related to his property or financial affairs;

(6) fails to satisfactorily explain any loss of assets; or

(7) refuses to obey court orders or refuses to respond to questions posed by the court.

Finally, the court may dismiss a Chapter 7 case if the debtor:

(1) unreasonably delays the proceedings to the creditors' prejudice;

(2) fails to pay necessary fees or payments; or

(3) fails to file his schedules.

Dismissal may also be justified if the debtor is an individual who has primarily consumer debt and the court finds that the granting of relief would be a substantial abuse of the bankruptcy process. Substantial abuse has been found by courts if the debtor is actually able to pay his debts when due.
.....................................................................

Steve, I guess we will both have to see what happens in a Court of Law, and how bad the vendors get the shaft. Pennies on a buck is quite a jolt for the vendors, if they receive anything at all.

We may never learn the full story about this one.

This is as far as I am going to address the issue. It gets too complicated beyond this point.

Email to them bounces from postmaster@showorkseg.com.

The recipient name is not recognized
MSEXCH:IMS:Soundelux:USA:MTSMINN 0 (000C05A6) Unknown Recipient

MTS has a Teccon 70mm mag head that belongs to the Madstone Centrum in Cleveland Heights, Ohio. I want it back.
 

I've seen this happen, where the sheriff walks into the business, serves you and tells you to leave the premises.

 

The Soundelux site is still alive:
http://www.soundelux.com/

------------------
John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Research Labs, Building 69, Room 7525A
Rochester, New York, 14650-1922 USA
Tel: +1 585 477 5325 Cell: +1 585 781 4036 Fax: +1 585 722 7243
e-mail: john.pytlak@kodak.com
Web site: http://www.kodak.com/go/motion

When Plitt went bankrupt up here, reports came to me that the employees walked out of the theatres with boxes and boxes of concession merchandise. There was nobody to stop them.

I am Glad That Soundelux Bought MTS Several years ago. The First thing they did was to drop profit sharing and give us stock options.
then the 401k match went away. they sold off several divisions and declared a huge stock dividend. And left Mts & Caddy to support the theme park entertainment division, Which was lossing money faster than Greenspan could print it. they then bought Impulse Group another profitable sound contractiong compant(I hope the owners took cash and not stock)But alas the theme division was losing money so fast and no one did a dam thing to stop that it was finaly to late. Thank you Lon Bender, Willie Statesman and Jeff Edell. As majority stock holders and ex-CEO i would not know what Share holder value means.

If my son does develop to a stage where he can walk,talk and have some understanding of the world around him ( the doctors think he will be a 12 year old). I will tell him all about what you guys did for the Business community and not about your Oscars.

When you guys go to your Business school reunion you can all have a big laugh about all the good people you screwed and then brag about how much money you cleaned out of the business.

Please send me the stock options as I am out of toilet paper and I would like to get some value From them.

Tim Eiler
 

Paul

Tim