Creative Loafing bankruptcy decision set for Tuesday, 2 p.m.
March 30, 2009 at 6:56 am by Wayne GarciaThe battle for control of the six-alt-weekly newspaper chain Creative Loafing reaches a climax on Tuesday in a Tampa bankruptcy courtroom as 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).
DL the judge’s order setting the announcement for 2 p.m. on Tuesday, cl-ch-11-253. She’s allowing the out-of-town Atalaya attorneys to attend via telephone.
March 30th, 2009 at 2:10 pm
Psst, Wayne: It’s Washington City Paper–not Times!
Thanks,
Mike Riggs
City Lights Editor
Washington City Paper
March 30th, 2009 at 4:09 pm
My hunch is Judge Delano will find for the debtor and not the creditor, leaving Eason in control.
March 30th, 2009 at 5:02 pm
Rockabilly …Why would you think that…?? So the Captin could go down with the ship?
March 30th, 2009 at 8:21 pm
I’m not a lawyer but as I understand Chapter 11 it exists to allow the debtor-corp to reorganize, and the burden of proof is on the creditor to argue that such reorganization isn’t feasible under the circumstances.
March 30th, 2009 at 8:21 pm
Amend that to say: isn’t feasible under current management.