Axium Alert

In the past week, those of you who received payments through Axium in the 90 days preceeding the Axium bankruptcy filing may have received letters from Howard Ehrenberg, who is the Chapter 7 Trustee for the Axium estates. These letters assert that all such payments must be returned to the Trustee and that litigation may follow if such payments are not received within two weeks of the letter. These letters are appropriate under the law, but we believe that your wages paid in these circumstances fall within an exception to the legal rule.

Guild counsel has negotiated an agreement with the Trustee; if you notify the Trustee and the Guild that you have received such funds under a Guild contract, your situation will be referred to a separate administrative track, and you will have a three-month window within which this issue might be resolved without resort to ligitation. There may be additional time insofar as the Trustee has until early January, 2010 to file any lawsuits for recovery, but we recommend reviewing your records now concerning proof that ties your payment to specific employment.

If you have received one of these letters, you can promptly notify Mr. Ehrenberg at axiumtrustee@sulmeyerlaw.com, and your Guild representative Nancy Forbes at (323) 782-4505 or by email Nancy Forbes, that you have received one of these letters, that the payments were paid pursuant to a Guild contract, and that you are participating in the Guild claim resolution process.

While we are not providing "legal counsel" at this time, we are pleased to relieve the time-pressure, and hope to provide further information concerning resolution of this situation.

Again, if you choose to pursue this option, please notify your Guild and Mr. Ehrenberg at your earliest convenience.

Joseph A. Kohanski
Bush Gottlieb Singer López
Kohanski Adelstein & Dickinson
500 North Central Avenue, Suite 800
Glendale, CA 91203-3345
Phone: (818) 973-3253
Fax: (818) 973-3201