Troma is close to folding?

[Katatonia]

...or just rumored by Fangoria?

Like them or not, they're about as independent as they come.

From Wikipedia:

The Future of Troma Studios

As of 2007, Fangoria Magazine reported that Troma Studios is close to folding as a company, perhaps as soon as it finishes its newest independent feature film Poultrygeist: Night of the Chicken Dead. Fangoria Magazine also reported that Poultrygeist: Night of the Chicken Dead, was the first Troma film that was funded out of pocket by Kaufman himself.

Today, Troma still produces and acquires independent films, despite many financial hardships and limitations.

Troma Films has distributed many films from third parties including Trey Parker's Cannibal! The Musical. Lloyd himself encourages independent filmmaking, making cameo appearances in many low-budget horror films-- occasionally for free. Among his more recent appearances is in former collaborator James Gunn's directing debut, the box office bomb Slither.

As of 2007, Kaufman next film, Poultrygeist: Night of the Chicken Dead, finished principal photography in the summer of 2005. The movie is slated for release, after several delays, in the summer of 2007.

Also, check the AB UK forum thread: http://www.anchorbay.co.uk/forum/showthread.php?t=12295