I chatted with Dave Law via another forum. Displaced authors are welcome to submit their orphaned works to Shadowfire Press for our consideration. ( I think Dave may have announced this on the VT author loop.)
I am still filling slots for publication in 2011 and am open to picking up erotic romance series--especially paranormals, fantasy or scifi--that were displaced by VT's closing. I am also open to considering non-erotic stories in the scifi, fantasy, horror, urban fantasy and mystery genres. We will consider well done steampunk with a preference to Victorian Era settings.
Our contract is based on the EPIC model and is negotiable. We pay 40% net. We define net as cover price minus payment processing--from our site--and 3rd party distribution fees from other sites. We never charge authors for anything, not cover art, ISBNs or editing. We do not have a kill fee and our release dates are firm--unless unavoidably delayed which doesn't typically happen---and are listed on the contract. We have a clause that, should we fail to publish your story within a year, the rights automatically revert to the author.
And, since this was apparently an issue with VT, I want to let everyone know that Shadowfire Press is my job. I am not employed elsewhere. (Well, other than writing my own books.)