Fresh Loaf

Our colleague Wayne Garcia at CL’s sister paper in Tampa reports:

And it will be on Aug. 25, during a hearing in downtown Tampa that will start at 10 a.m. Federal Bankruptcy Judge Caryl E. Delano today approved a disclosure statement for Creative Loafing’s reorganization plan after a week of intensive talks between the chain’s owners, in the form of company CEO Ben Eason, and its largest creditor, Atalaya Capital Management LP.

Atalaya is the investment fund that was owed $31 million from financing CL’s 2007 pay-down of debt and purchase of the Chicago Reader and Washington City Paper. As part of the negotiations, Atalaya has agreed to write-down its promissory note to $12 million, which would be repaid at 8 percent interest-only for five years and balloon due at that point.

According to the terms of the reorganization plan and promises made in court today, all CL creditors would be paid in full with two exceptions: Atalaya and BIA Digital Partners, which provided additional lending in the 2007 deals. BIA is now part of an Eason-led equity group that will bid for ownership against Atalaya.

…

“We are on board and supportive of moving forward under this process,” Atalaya’s lawyer, Tyler Brown, told the judge via telephone during the noon hearing.

That means that Atalaya is supporting the reorganization plan and auction process. It remains, however, interested in owning the nation’s second-largest [alternative] newspaper chain and has put in what is called a “stalking horse offer” of $2 million that will be the first bid up during the Aug. 25 equity auction, at which anybody can essentially bid to own the post-bankruptcy Creative Loafing.

Continue reading “Bankruptcy judge sets auction date for ownership of Creative Loafing alt-weekly chain” …

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Wayne Garcia at our sister rag in Tampa has an interesting post about PolitiFact, an online fact-checking project by the St. Petersburg Times that earlier today was bestowed with a Pulitzer Prize. Turns out Zell Miller, the former Georgia governor and senator who once told Chris Matthews he wouldn’t mind engaging the pundit in a friendly gentleman’s contest, inspired the keep-’em-honest news hub.

Garcia spoke with Bill Adair, the Times‘ D.C. bureau chief who launched the site in 2007, about Politifact.  And Miller, of course.

“It was at the 2004 Republican National Convention in New York, and it was the speech by Sen. Zell Miller making claims about John Kerry,” recalled Bill Adair, the Washington, D.C., bureau chief for the Times who came up with the idea for PolitiFact. “I was thinking, that’s not true. [But] I didn’t do anthing about it.”

Zell Miller at the 2004 Republican National Convention in New York City.

Adair had other stories to write that night, not covering a minor speaker at a speaker-laden national convention, and documenting lies in politics must have seemed like trying to count water molecules in the Atlantic Ocean for reporters seeking a traditional news story on deadline. But the problem of letting politicians get away with lying stuck with Adair.

“A lot of things that Zell Miller said went unchecked,” Adair said late Monday afternoon from the Times‘ newsroom, where a celebration was winding down. In spring 2007, Adair and Times editors were planning coverage of the 2008 elections, and he suggested they do a website that looked at truth in politics. “It was based on my own and others’ sort of shortcomings, that we didn’t do a lot of fact checking in the past and we let a lot of candidates get away with misstatments,” Adair said. “This is penitence for those shortcomings.”

Check out the rest of Garcia’s post on PolitiFact’s roots and mission.

(Photo by Joeff Davis)

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