The failure of this and several other high-risk ventures forced the publicly traded U.S. entity, K-tel International, to file for Chapter 11 bankruptcy protection in 1984. In 1986, the Bank of Montreal foreclosed on the K-tel Canadian subsidiary, at the same time as the US Chapter 11 filing. Advised by Minneapolis-based Sullivan Associates, K-tel negotiated settlements with banks and other preferred and unsecured creditors. Six years later, after all the legal battles, a settlement was reached with the Bank of Montreal, and in 1991, Kives got his Canadian company back.