Creditors blamed a breakdown in negotiations for their move to ask a federal bankruptcy court to put Inner City Media Corporation (ICMC) into involuntary Chapter 11 reorganization. Now, though, the company says it is in talks with the creditors about a settlement.
“Our radio stations remain on air, and our programming is intact. We are in active discussions with our new creditors. Our independent committee of directors continues to evaluate all of our options, and we look forward to arriving at an agreement that respects the Company’s storied legacy and better positions us to achieve continued long term success,” ICMC said in a statement. Company officials have been closed mouthed and that brief statement is all that is being said publicly about the dispute.
The Clerk of the Bankruptcy Court issued a summons to Inner City on August 22nd notifying the company of the action filed by the creditors on August 19th. Inner City has 21 days to respond once served, which presumably was on the 22nd or 23rd.
RBR-TVBR observation: We’ve heard that the creditors paid around $66 million for the senior debt, which now has a face value of over $250 million. The original lenders have taken their write-offs, so there’s now some negotiating room to get this resolved.