Hot Off the Presses: Total Disrespect!
Another day, another update about the bankruptcy case filed by Creative Loafing, our parent company.
Apparently a judge in the bankruptcy court will announce tomorrow if Creative Loafing's current owners can continue owning us and the rest of the chain, or if Atalaya, a creditor owed oodles (and a firm that also owns Bennigans), will be granted permission to take over.
Here's the money graph from Creative Loafing-Tampa Bay, the home newspaper of the group that bought us in 2007:
Atalaya wants to foreclose on its $31 million in loans given to finance CL’s 2007 expansion and purchase of Washington City Times and the Chicago Reader. That action was blocked when CL filed for bankruptcy court protection under Chapter 11 of the federal code in September 2008.
"Washington City Times"?
Again, this is from the flagship of the Creative Loafing chain.
"Washington City Times"?
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1:35 am
Creative Loafing also owes $10 million to Chantilly's BIA Digital Partners. What's up with that?
7:42 am
Dave and all the staff in DC: I'm embarrassed and totally apologize. That is the second time I have had that mental malfunction, for some reason I have "city paper" on the brain. I'll do better.
7:44 am
As for the BIA funding, BIA provided $10 million in so-called mezzanine lending during the 2007 deals. That means that BIA's debt is second in line behind Atalaya's. BIA has not taken a stance on the bankruptcy yet and has rarely had its attorneys participate, in just one hearing that I attended where the lawyer was connected via telephone to the courtroom.