AMS Bankruptcy

Advanced Marketing Services, the corporate parent of Publishers' Group West, has declared bankruptcy in the District of Delaware. This will affect authors and readers as many publishing houses are owed substantial sums, chief among them Random House, which is owed slightly over forty-three million. The announcement was a heavy blow to the hopes of authors with works involved in the earlier i-Books bankruptcy, since it was hoped that AMS would strike a deal for the works involved. Wells Fargo, which has been extending credit since 2004, declined a request for further assistance. AMS will attempt to reorganize—it is a Chapter 11 bankruptcy—with an operating expenses loan from Well Fargo Foothill.