Fresh Loaf

Eason

Fresh from a Tampa courtroom, our colleague Wayne Garcia has the scoop on CL’s ownership dispute:

Ben Eason, whose family started Creative Loafing in Atlanta in 1972, was vindicated in a federal bankruptcy court in Tampa today, as a judge ruled against a lender’s effort to take control of the nation’s second-largest chain of alt-weekly newspapers.

Judge Caryl E. Delano said despite contradictory (and flawed, in her estimation) reports about the chain’s value since going into Chapter 11 bankruptcy protection in September 2008, there was no evidence given that Eason’s management of the media company is harming its value, as lender Atalaya Capital Management had maintained in its effort to dislodge Eason and the current management.

To the contrary, Delano read from the bench, three days of hearings showed that Eason’s management had done a lot to preserve value, by making budget cuts and introducing an emphasis on web publishing models, including one in Tampa that has produced a sharp increase in web traffic while making the print edition a break-even proposition instead of a money-losing one.

“I find that Atalaya has not met its initial burden of proof and is not entitled to relief [from court stays against it foreclosing on the company's debt] at this time,” Delano said.

Continue reading “CL CEO keeps company — UPDATED” …

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Creative Loafing CEO Ben Eason

Here’s the latest — and most pressing — dispatch on Creative Loafing’s bankruptcy case, from our colleague Wayne Garcia at CL’s Tampa paper:

The battle for control of the six-altweekly newspaper chain Creative Loafing Inc. reaches a climax this afternoon in a Tampa bankruptcy courtroom, when Federal Judge Caryl E. Delano is set to rule on a motion by lender Atalaya Capital Management to take over the company.

Atalaya wants to foreclose on its $31 million in loans given to finance CL’s 2007 expansion and purchase of Washington City Paper and the Chicago Reader. That action was blocked when CL filed for bankruptcy court protection under Chapter 11 of the federal code in September 2008.

I’ll be there and will report as soon as possible from the anti-technology courthouse (no cell phones or laptops allowed in federal court).

Download the judge’s order setting the announcement for 2 p.m. on Tuesday. She’s allowing the out-of-town Atalaya attorneys to attend via telephone.

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1. Atlanta job fair at Georgia World Congress Center (If this post had attracted thousands of visits a few years back, I’d have laughed to myself and said, “What next? Creative Loafing declares Chapter 11 bankruptcy?” Hahahahaha.)

2. Soapbox: Jekyll Island Authority ‘at it again’ (At 239 comments and counting, the Jekyll post is encroaching on Black Mafia Family territory. A JIA v. BMF beef? Scary.)

3. AJC layoffs: this week or next (I’m not going to make a snide remark about the abovementioned job fair. This economy is no place for snide remarks.)

4. Georgia mayor’s Facebook page confuses nation (How easy it is to offend with a can of Schlitz and a pack of Camels!)

5. Sneak peek: Creative Loafing’s website makeover (The euphoria of making our own top-five list is only slightly diminished by the fact that most commenters trashed our makeover. Meanies.)

(Photo by Joeff Davis)

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Here’s the latest dispatch our colleague in Tampa, Wayne Garcia, about Creative Loafing Inc. CEO Ben Eason’s attempt to retain control of his six-newspaper company. The case continues next Tuesday in Florida bankruptcy court.

Ben Eason

It was A Tale of Two Media Companies as Creative Loafing CEO and President Ben Eason testified Thursday afternoon during a hearing to determine whether he keeps ownership of the alt-newspaper chain.

Or perhaps I should write, ownership of the alt-digital media company. Much of Eason’s testimony concerned the collapse of the print news publishing economic model starting in 2005 and accelerating with the advent of the current recession in mid-2008. Under direct examination from CL’s bankruptcy lawyer David Jennis, Eason detailed how the company responded to 20 percent decreases in advertising revenues that he says company officials started seeing in July 2008.

“There’s been significant changes in our business…” Eason said in what qualified as the understatement of the day.

Continue reading “CL CEO testifies in bankruptcy court” …

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Why, yes. We did get a haircut. And some new threads. We’ve been working out, too. A lot. So glad you noticed.

It’s true — we’ve finally overhauled our creaky ol’ website. Here’s just a tiny glimpse of our new homepage, which we hope you’ll find better-looking and friendlier than our old one. You’ll be privy to the real deal later today NOW. (Please excuse anything that looks out of whack; we’re working out the last few kinks this very moment.)

Our new-and-improved  Music, Food & Drink, News & Views, and Arts & Entertainment pages — as well as our new A&E blog, Culture Surfing — are pretty damn hot, too. You’ll see. Soon. Like in a few hours this very second.

Of course, our makeover won’t be complete until you, dear reader, tell us what might be tweaked to make it better. Don’t be shy (not that you would). Leave us a comment on this post, or hit us up here.

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The semi-official motto at Creative Loafing when I started here was, “Once a Loafer always a Loafer!”

No, I never quite swallowed that line either, but I’m willing to invoke it with some pride in reporting that our former news editor, Steve Fennessy, has just been named the next editor of Atlanta magazine, starting April 1. Steve now serves as deputy editor to Rebecca Burns, who will make a lateral move into a newly created position overseeing the magazine’s online initiatives.

Here’s what Deborah Paul, editorial director of Emmis Publications, the magazine’s parent company in Indianapolis, had to say about Steve in an internal memo (which, I should add, was not provided to me by Steve):

Steve has excelled as a writer and editor at Atlanta magazine, where his work has been recognized by Best American Crime Writing and earned him a prestigious Knight-Wallace fellowship. With close to a decade of experience in the Atlanta market (he was an award-winning senior editor at Creative Loafing prior to joining Atlanta), Steve brings a deep knowledge of the city to this role, vital for any city magazine editor. As a seasoned reporter, writer, and editor whose work has taken him from upstate New York to Egypt, he will ensure that Atlanta magazine’s standards for journalistic excellence are maintained.

Awwww. Not to get picky, however, Steve was news editor here and then senior writer, but never quite reached the pinnacle of professional achievement that is the job of CL senior editor.

(more…)

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By Wayne Garcia

Creative Loafing Inc. CEO Ben Eason appeared in federal bankruptcy court in Tampa today in the company’s continuing Chapter 11 case.

It was supposed to be a day-long hearing culminating in a decision from Judge Caryl E. Delano as to whether to allow Eason’s biggest creditors — Atalaya Administrative LLC and Atalaya Funding II LP, which loaned more than $30 million to Creative Loafing two years ago to finance the purchase of the Washington City Paper and Chicago Reader — to declare the company’s loans in default and take immediate ownership of the alt-weekly chain.

But that didn’t happen.

Without going into lots of technical bankruptcy law and financial valuation methodology, I’ll just report that testimony in the hearing didn’t go off as planned and has been continued until March 11. Both sides, while complaining of the effect of the delays, worked together during an hour-long recess to reconfigure the Chapter 11 timeline for the case.

Eason’s attorney argued that every day the ownership issue isn’t settled makes it harder to find new equity partners and reorganize the company; Atalaya’s lawyer argued that the value of its collateral continues to decline and is losing the hedge fund millions

Two more hearings, to determine the value of the company and approve part of the reorganization plan, are scheduled for late March and early April.

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Count me as the last to know — having just seen his obit in the AJC — that longtime Atlanta journalist and one-time CL news editor Tim Bentley died two weekends ago at age 55. I don’t believe anyone left in editorial here but myself worked with Tim when he joined the paper nearly 10 years ago. That’s a shame because he was one of the nicer people I’ve met in this industry — laid-back, upbeat, funny and very competent.

Tim didn’t stay long, no more than a year or so, as I recall. But I got the impression that Tim, who had near-white hair even then, never stayed anywhere very long. He seemed eternally restless to do something different, bouncing between journalism and politics.

By the time I met him, Tim had already written for array of magazines, political newsletters and local newspapers. Between those gigs, he worked on political campaigns for Jimmy Carter, Maynard Jackson, Max Cleland and others. Did I mention he was a Yellow Dog Democrat?

Not long after leaving CL, he was editing Business to Business magazine. I stayed in touch for a few years, partly because Tim was a great sounding board for potential stories, partly because he seemed to know everybody who was anybody in the realm of Georgia politics. But I’m sad to learn we won’t be crossing paths again. Ed Bean, editor of the Daily Report, has a fine remembrance of Tim on the Atlanta Press Club website.

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Feeling torn between Creative Loafing’s kick-ass news blog (um, that would be the one you’re reading) and our traditional news page? Now you can have the best of both!

On our new News & Views site, you’ll find a feed from this blog, a constantly updated rotation of top stories, in-depth news analysis and long-form cover features, Andisheh’s award-winning Don’t Panic! columns, links to special projects, a bunch of sites we like (and don’t like), headlines from around the web — and more.

If we’re missing something, let us know. If you’re bored, tell us what we can do better. If you don’t have anything nice to say …

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On Jan. 6, Creative Loafing lost a former veteran staffer. Dan Norton, 81, was an integral part of the team that helped put the Loaf on the map in the mid-’70s. For more than 25 years, he was a member of a family of talented people who poured everything into creating a great read every week.

His final position with CL was director of development, a job he held until he retired in 1999. In his last few years, he acted in and directed plays in Georgia and North Carolina. Dan had started his acting career in Chicago at age 6. He worked with Paul Newman during the actor’s early years, directing him in several stage plays in Woodside, Ill.

Dan’s wife Marci, who met him when she came to CL in 1994, hopes anyone who remembers Dan will attend his memorial service. “He had stories about all of you,” she says, “and I’d like to hear yours, about him.”

Dan’s memorial service will be held Sat., Jan. 24, at 2 p.m. at the DeFoor Centre, 1710 Defoor Ave.

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Tell all your friends! It’s time for the 8th annual CL Fiction Contest Party!

Joins us TONIGHT from 7-9 p.m. at Eyedrum (290 MLK Jr. Drive, Suite 8, 404-522-0655, www.eyedrum.org).

We received more than 200 entries and had to whittle them down to our three faves. It wasn’t easy, believe us. We had amazing help from our three local judges: award-winning children’s author Carmen Deedy; author, playwright and professor Phillip DePoy; and bookworm, aspiring author and Wordsmiths Books marketing guru Russ Marshalek.

The party, which is FREE!! and open to the public, is a great chance to mingle with writers in the community, listen to author readings from the three winning stories, dance to some smooth party jams by local band Night Moves Gold and indulge in refreshments from Highland Bakery.

Aside from the readings, live music and food, Wordsmiths Books will be on hand to sell books, CL will open up its press closet for a book swap and party co-sponsors Oxford Comics and Eyedeology, who’ll be collecting old eyeglasses, will have tables at the event.

Come help Creative Loafing support Atlanta’s burgeoning literary scene. We think you’ll like what you hear.

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1) Patrick Heagney discusses his exhibits, Memoria Technica and Paper Thin, at Hagedorn Foundation Gallery.

2) Join us at Eyedrum for Creative Loafing’s Fiction Contest Party!

3) New Wave Atlanta: When Urban Intervention Speaks French opens at GSU’s Welch School of Art and Design, with a pre-party intervention hosted by artist Stephane Magnin, Free Because It’s Yours, at Hurt Park.

4) Southern Comforts opens at Georgia Ensemble Theatre.

5) Metaphors & Symbols, Alan Loehle’s work during his Guggenheim Fellowship, opens at Marcia Wood Gallery.

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Tell all your friends! It’s time for the 8th annual CL Fiction Contest Party!

Joins us Thurs., Jan. 8 from 7-9 p.m. at Eyedrum (290 MLK Jr. Drive, Suite 8, 404-522-0655, www.eyedrum.org).

We received more than 200 entries and had to whittle them down to our three faves. It wasn’t easy, believe us. We had amazing help from our three local judges: award-winning children’s author Carmen Deedy; author, playwright and professor Phillip DePoy; and bookworm, aspiring author and Wordsmiths Books marketing guru Russ Marshalek.

The party, which is FREE!! and open to the public, is a great chance to mingle with writers in the community, listen to author readings from the three winning stories, dance to some smooth party jams by local band Night Moves Gold and indulge in refreshments from Highland Bakery.

Aside from the readings, live music and food, Wordsmiths Books will be on hand to sell books, CL will open up its press closet for a book swap and party co-sponsors Oxford Comics and Eyedeology, who’ll be collecting old eyeglasses, will have tables at the event.

Come help Creative Loafing support Atlanta’s burgeoning literary scene. We think you’ll like what you hear.

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Ben Eason

Wayne Garcia, our colleague at CL’s Tampa paper, attended today’s hearing about Creative Loafing Inc.’s bankruptcy protection proceedings.

Garcia reports:

Current Creative Loafing CEO and Chairman Ben Eason won a partial victory in federal bankruptcy court in Tampa today as Judge Caryl E. Delano refused to grant a motion by lender Atalaya to give it ownership of the company.

At a preliminary hearing this afternoon, Delano ruled that Creative Loafing’s reorganization plan should move forward and that it is too early to say that it can’t work. If it were nine months or more into the bankruptcy, Delano said from the bench, such a motion would be worth pursuing. “We’re three months into the case. I think the debtor should be provided a reasonable opportunity…. This case has been on a short string,” Delano told the parties in court. “The debtor has complied with those timetables” in producing a preliminary reorganization plan.

Garcia reports the judge scheduled an evidentiary hearing for Jan. 21. A hearing to review the proposed reorganization plan has also been scheduled for Jan. 26. Read more at Garcia’s blog.

(Photo by Jim Stawniak)

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Less than two weeks after he publicly offered a measly $1 million dollars to buy CL’s Atlanta operation, Sunday Paper publisher Patrick Best announced his plans today to publish editions in Tampa and Charlotte — two other markets where Creative Loafing Inc. has newspapers.

Atlanta Magazine’s Steve Fennessy wonders if Best’s announcement might be a bluff.

CL is in the midst of a Chapter 11 bankruptcy, and Best’s move could be intended to pressure CL’s creditors into selling him the Atlanta, Charlotte and Tampa papers:

Best’s announcement could be seen as a way to elevate his profile as a potential buyer of Creative Loafing. His message then would be pretty obvious: Sell the papers to me or I’ll try to run them out of business.

If you have a second, be sure to read Sunday Paper’s terrific press release on the expansion plan.

In the final paragraph, Best openly acknowledges that Sunday Paper’s “brand” strategy is to confuse people:

“‘The Sunday Paper’ is the newspaper industry’s strongest brand,” Best says. “When you refer to the Sunday edition of the Charlotte Observer or the St. Pete Times, you refer to it as the Sunday Paper. We’re taking advantage of the good will and recognition of this product name . . .”

If his short-term expansion plans are successful, expect Patrick to eventually launch a weekly international news magazine. He’ll probably call it Thyme.

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A guy named John has the bleakest post ever on his blog/photojournal Too Busy to Hate, which chronicles street life on maudlin Ponce de Leon Avenue. CL even gets a mention! Our “situation” is included in a litany of all the miserable and depressing things going on in Atlanta:

“Alternative weekly Creative Loafing declared bankruptcy, fired its editor, and is getting baited by rival Sunday Paper over its situation.”

“Baited“? By our “rival”? For a blog with such a peace-loving title, that sounds like fightin’ words to me.

Just saying.

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AIM HIGHER: Edelstein was the yeast in our Loaf.

It’s safe to say that Creative Loafing owes its reputation as the city’s smartest, edgiest, most endearing rag to Ken Edelstein, who up until last week was the paper’s editor for a decade.

The man lived and breathed the Loaf. From his disheveled mess of a cubicle, he’d impart his detailed recollection of a state Senate race circa 1998, or his vision for an Arts & Entertainment mega-section, or his adoration for a clever turn of phrase, a perfectly composed photo, and a well-crafted blog post. He was eager to talk, longwindedly at times, about the philosophy of newsgathering and his strategy for drawing readers to the Web. He obsessed on the grammar of every sentence he edited, calling out writers for their overuse of gerunds and each superfluous “that.”

As editor, Edelstein had high standards and a resume to match. His knowledge of Atlanta – its politics, infrastructure, and history – runs as deep as his desire to improve the city he calls home. In a column he wrote last year, he characterized Atlanta as an impetuous young woman, and he offered her a bit of advice:

“Too busy to hate, too busy to wait, too busy for anything but the next hustle. … You gotta clear your head of all the baggage from your past and aim a whole lot higher.”

Nearly everyone who knows him would agree that “aiming higher” is Ken’s mantra. He pushed his staff as hard as he pushes himself.

Read the rest of this column.

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Creative Loafing’s on the lookout for some party pics to be featured in our New Year’s Eve Guide Dec. 17. Anything that captures the essence of New Year’s Eve is fair game — Magic Markered declarations lovingly bestowed on faces, the classic couch pass-out, amusingly bad acrobatic endeavors, whatever. As long as it tells a New Year’s Eve story, we’re listening. If we like your image, we’ll slap it on CL’s cover.

Check out our You Shoot page for details on how to submit your images. Just make sure to tag any New Year’s Eve submissions with “clnyeve08.”

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It’s that time of year again folks - Fiction Contest time! And we know that given the current economic situation (there’s some serious cash at stake here people), there are more starving artists out there than ever.

So, submit a manuscript of no more than 3,000 words either as a hard copy to our offices or online. All works of fiction must in some way incorporate the word “pop” — as a theme, a metaphor, whatever. You can use the word as any way you like; just use it well. Originality is encouraged, and the word count is enforced.

Click on the image below for more details or to submit an entry.

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It’s that time of year again folks - Fiction Contest time! And we know that given the current economic situation (there’s some serious cash at stake here people), there are more starving artists out there than ever.

So, submit a manuscript of no more than 3,000 words either as a hard copy to our offices or online. All works of fiction must in some way incorporate the word “pop” — as a theme, a metaphor, whatever. You can use the word as any way you like; just use it well. Originality is encouraged, and the word count is enforced.

Click on the image below for more details or to submit an entry.

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Andisheh just pointed out to me that Sarah Palin told Katie Couric the other day that she reads Creative Loafing. I’m excited that a potential vice president “established her worldview” by reading our paper, as well as by reading dailies like the New York Times and Pravda.

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— As the big debate approaches, is Sarah Palin a sign the apocalypse is upon us? Over at Politits, Dcup wonders how Johnny Mac feels when his running mate is more popular than he is.

— Seeing the latest Katie Couric interview is disturbing. And the lovely Sara at Going Through The Motions makes the case that she’s the more qualified “Sara” to be vice-president because she can actually name some rather well-known Supreme Court cases. Maybe the other Sarah should click through to the list, just to bone up on our country’s history.

— And who wants to bet that the magazines she wouldn’t admit to reading include the National Enquirer and US Weekly? Based on Palin’s lack of reading material, ATLmalcontent hopes that it all turns out to be a bad dream come January.

— Ms. Palin professes to have a gay friend, although his/her identity remains a mystery. But J-Mac did agree to give an interview to a gay magazine, although he dictated that the questions and answers be written out. Can’t ever be too careful, right Mr. “Straight Talk” Express? At Reporter-Cub, there’s links and some analysis.

— As Driftgrift notes, Cynthia McKinney is running for president. No, I’m not kidding. Really and truly. For the Green Party. And based on the video Driftgrift dug up, either it’s the end of the world as we know it or else Cynthia has turned completely psychotic. Dig those bugged-out eyes.

– Going local, Righteous Jackass ponders Karen Handel, who used op-ed space in the AJC to make a vow to protect the integrity of the November elections and yet fights to limit the number of people who actually can vote. It’s the idea of the elite democracy, he says, where only a few are smart enough to lead the rest of us.

— And, finally, going even more local, the fine ladies at Pecanne Log discuss CL’s bankruptcy and stake out their vision for what the paper should be in the future.

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Former CL Senior Writer Steve Fennessy has a lengthy post on his Atlanta Magazine Cityscape blog about our recent Chapter 11 bankruptcy filing.

One of the most interesting bits:

[The filing] could also mean that [Creative Loafing Inc. CEO Ben] Eason has the company taken away from him. I asked if that possibility worried him. “It’s all speculative right now,” he said. “We’ve got 120 days to put a plan together. I think if we put a good plan together, I think the chances of me running the company are excellent.” (As it turns out, one of the major unsecured creditors to the company is Eason himself, who loaned the company $250,000.) Nor is Eason planning to sell the company. “That’s not something I want to do or something I’m interested in doing. As part of this filing, you have to think about what’s in the best interest for everybody. Right now, selling any one of the papers is not in our plans or something we think is in the best interest of the company.”

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STOCK MARKET FRESH: Atlanta-based Arby’s completed a $2.2 billion buyout of fellow fast-foodies Wendy’s yesterday. The new company, Wendy’s/Arby’s Group, expects to add up to 100 new positions at its Atlanta headquarters.

In an interview with the Wall Street Journal, CEO Roland Smith says Wendy’s/Arby’s will focus on wooing older customers. Perhaps not coincidentally, stock in the company that makes Lipitor is up this morning.

FRESH START: Yesterday, the parent company of this blog filed for Chapter 11 bankruptcy protection, as well as lawsuits against three of its creditors for refusing to renegotiate the terms of the company’s loans.

CEO Ben Eason says the bankruptcy filing is not bad news, but instead characterizes the move as an opportunity to restructure the company’s debt under more favorable terms and make what he calls a fresh start.

A RAFT OF THEFTS: Georgia is reportedly the nation’s boat theft capital. I’m sure it sucks to have your boat stolen, but I’m having a hard time getting worked up about it.

BEAT IT: Former Blink182 drummer Travis Barker was released from an Augusta hospital yesterday. Barker was severely burned when the small plane he was traveling on crashed in South Carolina on September 19. Four people were killed in the accident.

HEADLINE OF THE DAY: For Many Americans, Fear and Distrust Run High

Really? I wonder why.

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Well, maybe “world” is a bit of an exaggeration. But the New York media have chimed in!

Jerry Portwood, editor of New York Press and CL’s former assistant A&E editor, had this to say about our parent company filing for Chapter 11:

I once worked at Creative Loafing in Atlanta but left long before I had to witness its diminishing editorial or advertising power in the region.

Ouch.

Gawker.com, of all unlikely sources of commiseration, was more empathetic:

This may be just a foreshadowing of some painful days to come for alt-weeklies in general—we also hear the Village Voice may be on the verge of some layoffs.

The New York Observer took the silver-lining angle in response to news of the bankruptcy relief sought by Creative Loafing Inc., which also owns the Chicago Reader, Washington City Paper, and Creative Loafings in Charlotte, Tampa and Sarasota:

According to [City Paper Editor Erik] Wemple, it’s really not that big a deal—in fact, it might be a good thing—since, according to Creative Loafing C.E.O., Ben Eason (whom Mr. Wemple paraphrases), the fiing “would allow the six papers in the Creative Loafing portfolio to establish a greater online presence while the company reorganizes its operations.”

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