City Paper Owners Win Bankruptcy Ruling

The Washington City Paper will continue to be owned by Creative Loafing Inc., thanks to a ruling handed down today by U.S. Bankruptcy Judge Caryl E. Delano in Tampa. CEO Ben Eason will retain control of the alternative newspaper chain despite an attempt by creditor Atalaya to take over the company, reports Wayne Garcia from Loaf HQ in Tampa, who was careful to get the name of the D.C. publication correct this time. Eason is quoted as being "psyched" by the ruling, but his enthusiasm appears to need at least some tempering.

Delano also struck a cautious tone, saying that she believed the company has “an uphill battle” ahead to have any reorganization plan confirmed by the creditors since Atalaya is far and wide the biggest creditor and could choose to vote against any plan. Delano suggested mediation for the two sides, but after a 30-minute recess in which the two sides’ lawyers talked by telephone, the idea of having a mediator appointed was tabled for now, at least until April 20 when Creative Loafing reveals more details of its reorganization plan, including possible new investors.