The Chapter 11 reorganization of Plum TV is moving quickly. The US Bankruptcy court in Manhattan is preparing to set an auction for March 1st, in the event that anyone wants to outbid PMG Media Group, the stalking horse bidder.
As previously reported, a hearing is set for January 30th to approve the bidding rules. Plum TV announced that the court has approved a $250,000 interim loan from PMG to keep the cable TV channel programmer operating as a debtor-in-possession. The company says it expects the auction date to be March 1st.
In all, PMG has agreed to provide up to $1 million in DIP financing. Unless it is outbid, PMG will pay $15 million for Plum TV, including $14 million of debt assumption. That debt is owed to Plum TV founder/Chairman Thomas Scott and Director Jeffrey Stewart, who have agreed to swap the note for a 30% equity stake in the post-bankruptcy company.
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.