Black Crow Media Group announced that the judge overseeing its Chapter 11 bankruptcy case has turned down motions by GE Capital to dismiss the case so that it could seek to have a receiver sell off Black Crow’s radio stations.
GE Capital, as Black Crow’s senior lender, had told the US Bankruptcy Court in Jacksonville, FL that Black Crow’s financial picture was worsening and that it would not be possible for the broadcaster to put together a successful plan to emerge from Chapter 11 as a viable company. The Chapter 11 filing by Black Crow in January had the effect of short-circuiting a receivership action by GE Capital in New York State Court. Had the judge ruled in favor of GE Capital and dismissed the Chapter 11 case, that New York case would have been reactivated.
According to Black Crow (the ruling is not yet posted online), “the judge found that the Bankruptcy filing was precipitated by the overall weakness of the general economy along with a downturn in the advertising market over the last several years. He further found that operations have stabilized, current management is competent, and that reasonable steps have been taken to reduce the companies’ cost structure.”
The company said it intends to move forward with its plan to reorganize under Chapter 11 and emerge with a serviceable debt structure. “We look forward to emerging from the reorganization with a stronger company well positioned to continue servicing the needs of our local communities as we have for the last fifteen years,” said Black Crow founder/CEO Mike Linn.
Black Crow Media Group owns and operates 22 radio stations in five markets in Tennessee, Alabama, Georgia and Florida.