Lots of behind the scenes drama going on with this. Apparently the producer double-sold the rights (both to Code Red and Drafthouse).
From what I could follow, Code Red spent about $30K bringing the film to disc. They bought the rights for 10 years. Code Red only made about $5K on this release.
The rights holder offered Code Red $3K to forfeit the remaining years, which Code Red declined. So the rights holder went ahead and sold the rights to Drafthouse anyway.
Drafthouse slapped Code Red with a cease and desist, forcing him to remove The Visitor from his storefront. Now "lawyers are discussing".
Bill also mentioned that Drafthouse had pursued the rights to Night Warning in the past.