Crucial CL bankruptcy hearing starts … now — UPDATE
July 29, 2009 at 3:39 pm by Mara Shalhoup in Inside CLUPDATE: According to the St. Petersburg Times, the judge determined today that she won’t issue a decision on the rules of the CL’s equity auction until the actual auction day. Details below.
Our colleague Wayne Garcia, at our sister paper in Tampa, is keeping us in the loop on the latest hearing in the ongoing battle to determine who will be the owner of the six-newspaper Creative Loafing Inc. chain, the second-largest alt-weekly conglomerate in the country.
The battle is between current owner Ben Eason, whose family founded the chain, and Eason’s largest creditor, hedge fund Atalaya Capital Management.
Today’s hearing will was expected to finalize some important rules for the Aug. 25 equity auction, which will determine who will control the company. But the judge decided to hold off on finalizing the rules until the very day of the auction.
The St. Pete’s Times reports:
Creative Loafing, the weekly alternative newspaper chain based in Tampa, fears a bankruptcy auction of its stock next month could break up the company.
On Wednesday, representatives of Ben Eason, whose family started Creative Loafing more than 30 years ago, appealed to a judge to block its largest creditor from winning the auction….
Eason fears the deep-pocketed Atalaya could blow away other bidders, including Eason himself, and begin liquidating the company for cash as early as September.
Garcia, in Tampa, characterized the courtroom proceedings as “complex, confusing and undramatic.” He also writes that Atalaya has expressed interest in investing in Creative Loafing, should the hedge fund become the newspaper chain’s owner. Garcia also points out that Atalaya has claimed it intends to run the company, not liquidate it:
Atalaya, during hearings earlier this year, also said it plans to operate the business as a news media company and has a management consultant lined up. It also said it would make an additional $1 million line of credit available to the new CL if it is the successful bidder, for operational needs. “We’ve committed some real money here,” [Atalaya’s lawyer Tyler] Brown said in court.
(Photo by Joeff Davis)
July 29th, 2009 at 12:03 pm
So where is the CoveritLive embed?
July 29th, 2009 at 12:14 pm
“… Ben Eason, *whose* family founded the chain …”
July 29th, 2009 at 12:30 pm
Dash Riptide: I wish! Unfortunately, the federal court system doesn’t allow laptops, let alone cell phones, in the courtroom. Perhaps we’ll be able to come up with a live-blog plan for Aug. 25, though. The plan would likely involve a courthouse pay phone and rolls of quarters — just like the old days.
Kyle: Thanks for pointing out my grammatical brain fart. I hate it when people make the mistake I just made. Ugh.
July 29th, 2009 at 1:54 pm
Good luck guys. Whatever happens, I just hope we continue to have Creative Loafing in the coming years.
July 29th, 2009 at 2:43 pm
Creative Loafing has become as small as a phamplet lately that I take 5 minutes to read. I hope you can get your finances in order and start publishing a quality alternative weekly again.
July 29th, 2009 at 3:21 pm
Look up! http://www.tampabay.com/news/business/corporate/article1022973.ece
Creative Loafing judge won’t decide on bids until Aug. 25 auction
By James Thorner, Times Staff Writer
Posted: Jul 29, 2009 02:58 PM