Plum TV, Inc., owner of the Plum Network of local cable TV channels serving upscale and resort markets around the country, and its subsidiaries, announced the US Bankruptcy Court for the Southern District of NY has scheduled a hearing for 1/30, to consider auction procedures for the sale of the company’s assets under Section 363 of the Bankruptcy Code.
PMG Media Group (the “stalking horse” bidder) has already signed an agreement to lend Plum TV $1 million to fund its operations as a debtor-in-possession and then buy the company for that $1 million, plus assumption of $14 in senior debt. PMG has also cut a deal with the debt holders to exchange their senior note for a 30% equity stake in the new company.
The senior debt is currently held by Thomas Scott, Chairman of Plum TV, and Jeffrey Stewart, Secretary and a Director.
PMG Media is led by former Univision and Hearst Television executive Terry Mackin, now President of ForesightLab, a media consultancy, and Bill Apfelbaum, Chairman of Media Ventures Group. He previously headed outdoor advertising company Titan worldwide.
Of course, there will be a formal bankruptcy court auction, with PMG as the “stalking horse” bid. Any other bidder who wants to buy Plum TV will have to top the $15 million bid by at least $100K and PMG will get a break-up fee if it is outbid.
Plum TV operates cable channels in eight targeted luxury markets: Aspen, Vail, and Telluride, CO; “The Hamptons” in Long Island, NY; Martha’s Vineyard and Nantucket, MA; Miami Beach, FL; and Sun Valley, ID. The company says it also publishes print magazines, operates an interactive website, and broadcasts “through other electronic media outlets.”
The Bankruptcy Court approved a $250,000 interim loan to the company by PMG to be used to fund ongoing operations. If the Court-supervised auction procedures are approved at the 1/30 hearing, Plum anticipates that an auction of the its assets will be held on 3/1.