Just because the Japanese do everything backwards compared to their North American counterparts doesn’t mean they’re doing it wrong. I actually like the way they handle bankruptcy: if a company looks like it’s going down in flames, creditors can petition in court to push the company into bankruptcy so they can collect on what’s owed to them. This makes the whole process a lot less like a get out of debt free card for the company and more like a positive legal remedy for creditors to actually get what’s owed to them.
This is the process that Golden Glory’s Bas Boon has been going through in regards to FEG, the scumbag K-1 and DREAM promoters who stiffed countless fighters over the past few years. Lo and behold, he has been successful. Boon’s statement:
“At 5 pm on May 7, the Tokyo District Court issued an order declaring FEG bankrupt, and commenced proceedings to wind up the company. The court ruled that FEG is insolvent and has appointed a trustee to administer all outstanding debts of the company.”
“We estimate that FEG’s debts exceed $30 Million; Golden Glory is owed nearly $2 million, all of which is debts to fighters and trainers. The real tragedy is for the many incredibly talented athletes, production companies, venues, and other suppliers who were making an honest living providing services to K1.”
FEG already sold the K-1 brand off to a separate company, so there goes the most valuable piece of its pie right there. Also cloudy is ownership of DREAM, FEG’s MMA promotion. FEG ran that in conjunction with Real Entertainment, a bunch of former PRIDE employees. And while DREAM suffered from the same financial problems and propensity to screw fighters out of pay, Real still plans to go ahead with a summer event featuring Sakuraba vs Aoki.
Only time will tell what the effects this forced bankruptcy will have, but here’s hoping it marks the last time a fighter gets duped out of his paycheck. Kudos to Bas Boon for attempting to get what’s owed out of the company. Even if the coffers have already been bled dry, at least he can be proud of killing off a parasitic company with no regard for its fighters or the scene.