CONCORD, ON, Canada -- JVL Corp. announced in mid-February that its restructuring proposal had won support from the company's suppliers and other creditors. The proposal was approved by 86.67% of affected creditors that voted in person or by proxy, representing 95.47% of the total value of the claims, JVL said.
In December 2010, JVL sent letters to creditors explaining that MSI Spergel Inc., a Toronto-based law firm, had filed a proposal in Canada's bankruptcy court for JVL's financial reorganization and repayment of creditors. The plan was filed under Canada's Bankruptcy and Insolvency Act, which is the equivalent of the U.S. Chapter 11 laws for reorganization as an ongoing concern.
At the time these letters went to creditors, JVL said it was continuing with business as usual and that its founders, Joseph and Val Levitan, "continue to support JVL." Officials did not indicate either the cause of JVL's financial difficulties or their extent.
Following creditor approval of the proposed reorganization plan, JVL chief executive Peter Guterres indicated that a transitional taskforce is working with the JVL team. "The strengthened JVL will work to reward the confidence that has been shown today," Gutteres said.
JVL said it continues to operate under the same management and ownership to provide products for the amusement, casino, mobile and music industries. Apparently as part of the reorganization, the company now develops and manufactures its lines under the name JVL Labs Inc. and distributes products through JVL Amusement Inc.
At the recent Amusement Expo in Las Vegas, JVL showed several new products for music and games operators. For its main touchscreen product, JVL had three new videogames, including updates to Gone Fishing and Bonbon, two of its most popular action lines.
The company also showed a prototype of its new digital music streaming system. Called Boom X Media Stream, the new concept uses a dedicated JVL touchscreen terminal to manage and present streaming music for public consumption. It will likely replace the all-in-one touchscreen videogame and music media streaming solution that JVL unveiled in 2009. That original music system was paired with a countertop game, a practical solution that nevertheless would likely create conflict between game players, who require more time in front of the terminal, and music customers, who like to make frequent selections.
PHOTO: JVL chief executive Peter Guterres shows off Boom X Media Stream terminal. New pay-for-play streaming music system is being positioned as a low-cost alternative to conventional digital jukeboxes.
Unlike conventional digital jukeboxes that store some music locally, all content for Boom is external and streamed on demand. Streaming media are multimedia that are constantly received by and presented to end-users while being delivered by a streaming provider. The name refers to the delivery method of the medium rather than the medium itself.
JVL says Boom features an intuitive user interface and intelligent music search functions that allow patrons to quickly access selections from a library of 3.5 million songs. The system includes the display, media-streaming box, amplifier and ordering station. It will be a wall-mounting unit.
Guterres said JVL's strategy in the coin-op sector is to continue refreshing HD content and exploring low-cost music solutions.
Founded 25 years ago, JVL Corp. is a privately held company that makes touchscreen videogame and media streaming systems, along with casino games. Its Encore and Vortex countertop games are widely used by coin machine operators.
The Levitans founded JVL more than 25 years ago after immigrating from Russia. They also launched another concern that became a leader in banknote validation. That company, CashCode, was sold to Crane Co. in 2006 for $86 million.