Sounds like a great story, but what's really going on here? Surely there's a side that isn't presented. Everyone in the comments is talking about how evil the VC firm is, but the outcome wasn't exactly great for them, either. Their interests should be at least loosely coupled with those of the founders (different risk/return rate preferences for sure, but that doesn't make shutting down promising companies profitable). It's not like they screwed the founders over and made a tidy profit, from the figures available it was more like stemming the bleeding of a cash hungry company that wasn't really going anywhere.
So if what they did is evil, what was their motivation? Killing FilmLoop to increase the other companies chance of success? Bumping up their fund statistics by trying to call it a liquidity event? Either could explain the short deadline for liquidation, which otherwise doesn't really make sense. Anyone know more about this?