Fun With Bankruptcy, Nunc Pro Tunc and an $185,000 Retainer
Perusing the scanned documents from our parent company's Chapter 11 case, I'm finding a lot of lingo I don't totally understand (PDFs: Emergency Motion to Use Cash Collateral, Emergency Motion for Nunc Pro Tunc Authorization). But hey, here's one I think I get: Notice of Deficient Filing. It appears that Ben Eason's bankruptcy papers were missing a few crucial details, like a statement of financial affairs and a list of creditors with a schedule of liabilities. Eason's initial filing included a list of just the top 20 creditors (PDF: List of Creditors), and only one noted the amount owed: about $83,000 to the Fayetteville Publishing Co. Also missing, how much Eason's attorney will get paid and a case management summary. If Eason doesn't turn in the missing paperwork, the case could be dropped. I have a feeling that would be bad news for us all.
Actually, it looks like they did file a document showing how much the attorneys have already collected: a retainer of $185,000, a bit more than they told us we'd have to cut from the City Paper budget a while back.
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10:31 pm
What a scumbag. He's like all those homeowners who got us in this mess, buying the city paper when he couldn't afford it. Maybe he's planning to sell it to Paulson for a few billion.
10:07 am
The Stupidity of Hope.
11:22 am
This is insane. Since the take over The Reader has suffered its worst losses in terms of what I think actually made it valuable. It lost writers, and its local feel. Now it sounds like it will be gone all together. I'm sorry to The City Paper as well, if it has been anything like it has here, you deserve some sympathy.
3:41 pm
The list of creditors did not include any amounts because we pay all our bills on time and all the invoices received to date had been paid. If you would like more information, you could call us here in Tampa and we would be more than happy to give you facts so that you don't have to blog your assumptions.
4:52 pm
The problem with these once great alt weeklies (on the business side exclusively), in several markets (it's not just Eason), is that the pioneers and founders who created them have turned them over to their idiot children. The over-indulged spawn of now-rich hippie media types are managing to run their parents' companies into the ground. Quel dommage! But in every industry one can find examples of the 'self made son' screwing up the family business. This can be a healthy thing, though, as it allows driven entrepenurs to launch their own companies and overtake them. Ah, capitalism!
4:59 pm
A fair point, "Corporate employee," and one that Angela herself addressed in her next post. She also used her name on both posts, which is an excellent policy.