What follows is Luke Ford's take of the situation ......

Jill Kelly Breaks Silence

Reading her AVN interview, it seems that she takes little responsibility for her company's bankruptcy and only blames others for its misfortunes.

She claims she is going back to Jill Kelly Productions (JKP) to help out the creditors. The truth is that when she tried to form a new company, all the distributors that she approached turned her down. She has no choice but to go back to JKP.

Jill tells AVN: "I can really see who my true friends are. Nobody ever wants to see anybody successful and happy. I'd rather just be with my animals. I'm not bitter, it's just people in general make me sick. I'd rather just spend time with my dogs and my horses."

Distributors are not stupid. They know that Jill played a role in the JKP meltdown.

I wonder if Bob Friedland (former CEO of JKP) will eventually sing to the Grand Jury. He's got nothing to lose. When Friedland talks, Jill may have to forget about funding a new company and start funding her legal defense.

JKP owes distributor IVD so much money that IVD won't talk to Jill about distributing her new company.

"IVD bought the factor. We owe the factor like $380,000. ... So that’s why we had to file Chapter 11. It’s the only way I know how to try to make things right. I feel responsible. I should've educated myself a lot more rather than just be on the creative side, so I take full responsibility."

Factoring means selling invoices. Say you have a deal with distributor X to 1,000 of your movies at $12 payable within 90-days, you can sell that invoice for about 90% of its value.

Almost every production company factors.

Jill has a long history of working with shady companies. Personalporn.com was one. They stole content.

"She is attracted to cons like flies to s---," says Mike South. "Look at her stock filings for JKP. They list her salary as $450,000/yr and she is bitching in that interview that she wasn't mking that. If she wasn't, then she was party to a big scam."