The Our Alchemy LLC bankruptcy lawsuit refers to a long series of adversary proceedings filed by Chapter 7 Trustee George L. Miller after the Los Angeles film and television distributor collapsed in July 2016, and after nearly nine years of litigation aimed at clawing back tens of millions of dollars from insiders and affiliates, most of the trustee’s biggest claims were dismissed. The final blow came on March 31, 2025, when a federal district court affirmed summary judgment against the trustee in his $23.8 million fraudulent transfer action.1GovInfo. Miller v. Anderson Media Corporation (District Court Appeal)
What Alchemy Was and How It Collapsed
Our Alchemy, LLC, known publicly as Alchemy, was an independent film and television distributor built from the former Millennium Entertainment catalog. In 2014, a management team led by CEO Bill Lee, together with private investment firm Virgo Investment Group, bought the business from Avi Lerner’s Nu Image.2Variety. Millennium Entertainment Catalog Distribution Platform Sold The company rebranded as Alchemy in January 2015.3The Hollywood Reporter. Indie Distributor Millennium Entertainment Renamed Alchemy
On July 13, 2015, Alchemy announced it had acquired ANConnect and Anderson Digital, the physical and digital distribution divisions of Amarillo, Texas-based Anderson Media Corporation. Anderson Digital’s co-owners Freyr Thor and Steve Lyons joined the company, and Anderson Media CEO Charlie Anderson became an investor.4The Hollywood Reporter. Alchemy Acquires ANConnect and Anderson Digital The deal pushed Alchemy’s annual output past 1,300 films and 3,000 television episodes.5IndieWire. Alchemy Acquires ANConnect and Anderson Digital Distribution Companies
The expansion did not pay off. Theatrical releases underperformed, and Alchemy lost distribution rights to higher-profile titles including The Lobster.6Variety. Alchemy Files for Chapter 7 Bankruptcy Protection Lee stepped down in December 2015. Two rounds of layoffs in early 2016 cut the workforce from roughly 100 to about 20. According to creditors, management was using client funds to cover payroll and was still promising a “recapitalization” the week the company filed for bankruptcy.7Deadline. Alchemy Closes Doors
The Chapter 7 Filing
Our Alchemy, LLC and Anderson Digital, LLC filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the District of Delaware on July 8, 2016. The petition listed liabilities of $50 million to $100 million against assets of $10 million to $50 million. The creditor list ran more than 290 pages and included CAA, ICM, and WME; the DGA and WGA; Showtime and HBO; and the IRS.8Deadline. Alchemy Bankruptcy Chapter 7 Long List of Creditors
What the Trustee Alleged Insiders Did
Chapter 7 Trustee George L. Miller argued that Alchemy had been drained by its own owners and affiliates. According to his filings, Virgo acquired Alchemy through a limited partnership called Calrissian L.P., which took on a $14.34 million note from Virgo entities. Alchemy then entered a $40 million credit facility with SunTrust Bank and transferred about $14.5 million back to Calrissian as a “member distribution.” The trustee alleged this doubled Alchemy’s bank debt to over $31 million and left the company insolvent from the start.9CaseMine. Miller v. ANConnect, LLC (In Re Our Alchemy, LLC)
The trustee also alleged that Virgo directed Alchemy to buy ANConnect for roughly $37.7 million and secured $10 million from investor Ardon Moore to help fund the purchase, in exchange for Virgo’s agreement to “bail out” ARC Entertainment, a failing company connected to Moore.
The 2018 Adversary Proceeding
In June 2018, Miller filed a sprawling adversary proceeding (Adv. Pro. No. 18-50633) naming ANConnect, Anderson Merchandisers, OA Investment Partners, OA Investment Holdings, ARC Entertainment, five Virgo entities, and individuals including Ardon Moore, Mark Perez, Jesse Watson, Todd Dorfman, Bill Lee, Steve Lyons, and Freyr Thor. The claims included preference claims under Section 547, fraudulent transfers under Section 548, and turnover claims under Section 542, along with breach of contract claims tied to a Transition Services Agreement and a Merchandising Agreement from July 2015.10Leagle. In Re Our Alchemy, LLC11U.S. Bankruptcy Court, District of Delaware. Miller v. ANC Jury Trial Demand Opinion and Order
Two early rulings narrowed the case sharply. The trustee had targeted about $2.45 million in transfers to Steve Lyons, including a $1.4 million membership interest payment, a $245,000 distribution from Anderson Digital, severance, and legal fees. The court partially dismissed those claims, holding that Lyons was not a statutory or non-statutory “insider” of Alchemy when the challenged transfers occurred.12CaseMine. Miller v. ANConnect, LLC (In Re Our Alchemy, LLC) – Lyons Motion
In September 2019, Bankruptcy Judge Kevin Gross dismissed the claims against Ardon Moore. The trustee had alleged Moore became a “board advisor” in July 2015 and used his position to force Alchemy to assume ARC’s $2 million debt to Sony DADC and hire ARC’s CEO at a $350,000 salary. Judge Gross concluded that Moore’s relationship with Alchemy was an arm’s-length commercial arrangement, not a fiduciary one, and that the evidence did not show Moore acted as a de facto manager.9CaseMine. Miller v. ANConnect, LLC (In Re Our Alchemy, LLC)
The $23.8 Million Anderson Media Suit
In December 2021, the trustee filed a separate adversary proceeding aimed at what he called the biggest scheme of all: approximately $23.8 million in transfers from ANConnect to Anderson Media Corporation and Anderson Management Services, Inc. in June and August 2016, while ANConnect was winding down and allegedly insolvent. The complaint alleged the transfers were made with “actual intent to hinder, delay, and/or defraud” creditors and identified several “badges of fraud,” including that they went to insiders for no consideration, followed the filing of substantial counterclaims by Our Alchemy against ANConnect, stripped ANConnect of substantially all its assets, and were concealed. The trustee also sued Anderson Media managers Charles C. Anderson Jr., Jay R. Maier, Bill Lardie, and Chuck Taylor for breach of fiduciary duty.13GovInfo. Miller v. Anderson Media Corporation (Case No. 21-51420)
On the motion to dismiss, the court split the difference. The actual fraudulent transfer claim survived. The constructive fraud claims and a Section 544 claim were dismissed with prejudice as time-barred under the four-year statute of repose in the Delaware and Texas versions of the Uniform Fraudulent Transfer Act.
The surviving claim then failed on its own timing. The defendants argued that even under the one-year discovery-rule savings clause, the trustee had waited too long. The court focused on a September 13, 2018 settlement meeting where ANConnect’s representatives told the trustee that ANConnect had transferred “a million dollars or two” to affiliates and was “judgment proof.” The trustee said he did not learn the true figure was $23.8 million until ANConnect produced documents in March 2021 in a related proceeding, and he accused the defendants’ representatives of deliberately minimizing the numbers in 2018.
On February 13, 2024, Judge John T. Dorsey granted summary judgment for the defendants. He ruled that the trustee had been on “inquiry notice” as of the 2018 meeting: he was already litigating other fraudulent transfer claims against ANConnect and had been told the company was judgment proof, so his failure to investigate further was fatal, regardless of any alleged “stonewalling” by the defendants.14U.S. Bankruptcy Court, District of Delaware. Our Alchemy Final Opinion Summary Judgment
The 2025 Appeal Ends the Case
The trustee appealed to the U.S. District Court for the District of Delaware. On March 31, 2025, the district court affirmed, holding that the trustee had not shown a genuine dispute of material fact on the timeliness of his claims.1GovInfo. Miller v. Anderson Media Corporation (District Court Appeal) The affirmance closed off the trustee’s effort to recover the $23.8 million and effectively ended the largest recovery action arising from the Alchemy bankruptcy, almost nine years after the company filed for Chapter 7.