Sources close to the company blamed an acquisition binge for Axium's financial woes but said the writers' strike, which has halted production on many TV shows and films, was the tipping point.

"They were a little shaky and the writers' strike threw them over the edge," said one client

Make sure to file your claim just in case there is anything left. You should get a notice from the court. Keep copies of all your billing records related to the weeks in question. Also, keep the records for the prior year. Sometimes the Bankruptcy trustees come in and ask you to return some of the money you have been paid. If you have good records of billing and payments you can challenge the claim. I have done it successfully several times. The billing and payments records are crucial.

Do not file a Proof of Claim at this time. There does not appear to be any property available to the trustee to pay creditors. you therefore should not file a proof of claim at this time. if it later appears that assets are available to pay creditors, you will be sent another notice telling you that you may file a proof of claim, and telling you the deadline for filing your proof of claim.

There have been several filings within the Central District of Ca. Bankruptcy Court... Axium Intl Case # 2:08 bk-10277 , and Diversity MSP Ink (aka ECG, Ensemble Chimes Global) case # 2:08-bk-10376-BB

The court has consolidated and has rescheduled for March 13, 2008 @ 8:00 AM. The new Bankaruptcy Trustee is Howard Ehrenberg of Sulmeyer Kupetz. Arrangements are being made so that any money owed to Consulting firms such as those mentioned will be paid to the new Court appointed exec. (who has been identified). As long as they money has not already been paid to Ensemble-Chimes it will go directly to this new exec. who will then pay us 100% and not a % on the dollar.

The division of Los Angeles-based Axium International, which filed for Chapter 7 bankruptcy protection on Jan. 8, is set to be auctioned off in a California court Wednesday. Chimes founder Barry Olson has partnered with Vedior North America to buy the company for $7.5 million. Olson, who left the company before it was sold to Axium, has proposed taking on all Chimes' contracts effective Jan. 9, according to bankruptcy filings. Veidor North America is a subsidiary of Amsterdam-based Veidor NV.

In a letter to Chimes' customers, Olson and bankruptcy trustee Howard Ehrenberg said they are seeking court approval for a process that would be used to pay vendors.

In a telephone conversation with ASA last week, Ehrenberg said the purpose of the process is to ensure that suppliers and employees get paid and to facilitate the continuation of the existing Chimes arrangements with clients. He said the payment proposal would be included in a motion to sell Chimes's assets that was filed with the bankruptcy court Friday. Ehrenberg expects the court to approve the motion, which will be heard Jan. 23.

Under the proposed process, employee time and expenses are to be entered and approved in the Chimes system. A consolidated invoice will be generated and payments made to suppliers, less the management fee, for approved hours and expenses worked and incurred after Jan. 9. Hours and expenses worked, incurred, and approved prior to Jan. 9 will be paid "as long as the hours and expenses are billed as part of the normal billing cycle after Jan. 9, 2008." Ehrenberg explained that the latter provision is intended to include services provided before Jan. 9, even if the client has already been invoiced for those services, as long as the client hasn?t already paid the invoice. He said that amounts already paid to Chimes would have been seized by Chimes's lender, the hedge fund Golden Tree, and therefore a staffing firm that did not receive its payment from Chimes would have to seek recovery of those amounts by filing a creditor's claim.

The letter pointedly advises clients not to enter into outside arrangements until further instructions from the bankruptcy court and states that clients should avoid paying suppliers directly. "Staying within the process spelled out in the letter provides customers with the assurance that they have honored the guidance provided by the trustee and protects them against future claims from secured creditors," the letter concludes.

On January 23rd, the bankruptcy court approved the sale of certain ECG/CHIMES assets to MPS Group, Inc., a provider of staffing and consulting services. Our contract with ECG/CHIMES and the Supplier and Contractor agreements with ECG/CHIMES were not among the assets purchased. In fact, no customer contracts were purchased. At this time, we will aggressively begin exploring options with the ECG/CHIMES bankruptcy trustee that will allow us to make payments directly to Suppliers and Contractors for services rendered on and after December 1, 2007. To date, the trustee has been very responsive to our communications and requests. We are cautiously optimistic that we will have an agreed plan by early next week after which time we can begin making the payments. Please note, however, that we will NOT make direct payments until such time as we have the authorization from the bankruptcy trustee to do so.

Again, thanks for your support and patience as we work through this situation.

...the automatic stay of section 362 of the Bankruptcy Code is hereby modified and customers and thier affiliates are provided with adequate protection to permit Customers and their affiliates to take all steps deemed to be reasonably necessary to insure the payment of Employees and applicable guilds of all amounts now or in the future due and owing to Employees or such guilds in conjunction with products relating to the Contracts.

The parties mutually agree that Customer is expressly named as third party beneficiary
of all rights granted to Chimes under this Agreement, but Customer shall have none of the duties, responsibilities, or liabilities imposed on Chimes hereunder.