DEN Files for Bankruptcy Court Liquidation, Owes 200 Creditors

Digital Entertainment Network has filed for Bankruptcy Court liquidation, saying it owes more than $10 million to more than 200 creditors. The Chapter 7 filing last week in Los Angeles had been expected since the company closed its Santa Monica office last month and dismissed its more than 100 employees. The filing makes the company, also known as DEN, one of the highest-profile Internet firms to end in bankruptcy. DEN created short videos, aimed at a 14-to-24-year-old audience, that could be watched over the Internet. Backed by investors that included Chase Manhattan’s venture arm, Dell Computer, Microsoft, Intel and NBC, DEN spent tens of millions of dollars without drawing enough viewers to sustain its advertising-dependent business. DEN dropped its plan for an initial public stock sale in February after its chairman and founder, Marc Collins-Rector, resigned from the company and settled a child molestation lawsuit for an undisclosed sum. The bankruptcy filing said DEN has assets of between $1 million and $10 million. DEN attorney Ronald Leibow said the true figure is at the high end of that range.