Creative Loafing’s Chapter 11 reorganization plan
December 16, 2008 at 4:43 pm by Wayne GarciaOur alt-newspaper chain has filed its Chapter 11 reorganization plan, making its case for continuing ownership and management by Ben Eason:
The Debtor believes retention of existing senior management and existing publishers, editors, directors of shared services and key online personnel are vital to successful implementation of this strategy as the markets are shifting very quickly at this time.
The reorganization plan values the company, post-bankruptcy, at being worth $8 million to $15 million. It also appears to ask creditors, especially the largest creditor, Atalaya, to accept as little as half of what they are owed as the company tries to readjust its debt load. The filing says under the reorganization plan, there would be a 100 percent chance that Atalaya would recover its $5 million-$15 million in secured debt (out of a total in excess of $30 million). The chances of getting its investment back beyond that? “Undetermined” is how the plan puts it, as it would have to split an unknown pool of money that would be left over the next three years of operations.
You can download the Disclosure Statement portion of the Reorganization Plan here. The filings include a 10-year financial forecast and an analysis of how much the company would bring if it were liquidated.
A hearing on the adequacy of the plan is set for Jan. 26 in Tampa.
