News that Coriolis Group parent company Haights Cross had a good year in 2001 (News, Apr. 8), has several Coriolis authors wondering why Haights Cross cannot improve the financial package they are being offered to cover money that is due them. According to a letter sent to authors, Coriolis, which closed its doors March 29, is offering to pay authors 20% of the amount due them as of December 31, 2001, a figure that includes royalties and reserves.
The amount of money paid could increase if Haights Cross is successful in selling some of the assets of the company, a process that is ongoing. But some authors, citing the company's good year, want Haights Cross to chip in funds immediately. "Obviously, they didn't need to sever this ailing limb and bloody so many people," an author said. Peter Quandt, chairman of Haights Cross, emphasized that Coriolis has its own capital structure from Haights Cross and is the only company in which Haights Cross is not the sole owner. "We've never taken any money out of Coriolis, we've only invested in it," Quandt said. "We're trying to settle things as best we can."
A person familiar with the negotiations between Coriolis and the authors said that while he sympathizes with the authors, the offer "was a reasonable way to wind things down. It's a terrible situation, but an equitable solution." As part of the agreement, authors will have their rights revert to them if no sale is made. One author said that while he was unhappy about the financial arrangements, he was glad that Coriolis avoided a Chapter 11 filing that could have tied up his rights for years. "I just want my rights back as soon as possible," he said.
