A recent hearing between representatives for Jill Kelly Productions and those of the Kay brothers, Frank and Michael, and their New Jersey-based Pleasure Productions has ended in a stalemate for the next few weeks.
The meeting between the two parties is following a move by JKP to block the Kays from foreclosing on a lien purchased through their company XGenLLC, that would see them obtaining a considerable amount of JKP titles and assets.
Additionally, JKP attorneys have struck back by seeking damages for XGen and the Kays' interference with JKP to license its own titles.
Sources told AVN.com that JKP would like to continue as a company, and in the next weeks the courts will decide if that is possible or not.
JKP filed for Chapter 11 bankruptcy in August of 2005.
Neither Frank Kay nor Jill Kelly were available for comment. JKP CEO Philip Starr had no comment on the matter.
