Perseus Books Group is offering publisher clients of AMS subsidiary Publishers Group West a deal to pay them 70% of the money PGW owes them in exchange for distribution contracts with Perseus. This would remove those distribution contracts with PGW from the assets of the bankrupt AMS (see 'AMS Bankruptcy Roils Books World').
The proposal, which would also have to be approved by the bankruptcy court, also provides for the payment of PGW's expenses for five months, while a transition to Perseus' own distribution operations is effected.
Perseus has acquired PGW's largest client (see 'Perseus Looking at PGW') and has also reached agreement with PGW's second largest client, Grove/Atlantic, for distribution.
Getting 70 cents on the dollar and a distributor with a future will probably appeal to many of PGW's clients, which include Broccoli, Gigantic Graphic Novels, Actionopolis/Komikwerks, ibooks and Dark Horse Press (the company's prose fiction imprint).