Results tagged “bankruptcy”

New York hedge fund Atalaya Capital Management were the winners in a bankruptcy auction in Tampa today to see who would control the Creative Loafing newspaper chain, owners of the Washington City Paper and other alternative weeklies, reports the St. Petersburg Times. Atalaya was Creative Loafing's largest creditor by far, and they took control of the company by significantly outbidding a partnership made up of now former Loafing CEO Ben Eason and another hedge fund creditor, BIA Digital Partners. Atalaya offered $5 million, while the Eason group opened with $2.32 million.

Concluding a more than four-year rollercoaster without inclines which supplied City Paper sports writer Dave McKenna with endless amounts of material, the Daniel Snyder-controlled Six Flags chain of amusement parks is officially bankrupt. Filing yesterday, the company finally admitted that their $2.4 billion debt mountain was unclimbable, even after selling off properties to gain capital and attempting to restructure agreements with creditors. Six Flags' stock offering was recently kicked off the New York Stock Exchange and downgraded to "junk" status. It's reported that Snyder and his Redskins buddies who went in on the company lost over $130 million on their initial investment; I wonder how many flags losing that kind of scratch registers on the fun-o-meter?

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.

UPDATE:Olsson's has since posted a press release on their web site announcing the closing of all five locations. They've also created a blog-style testimonial page for fans of the local chain to leave their thoughts on the news.

Yesterday Creative Loafing, the owner of the Washington City Paper, announced it had filed for Chapter 11 bankruptcy protection. In a post on City Desk, City Paper editor Erik Wemple quoted Loaf CEO Ben Eason playing the filing off as not as bad as it sounds, since bankruptcy will give the company the breathing room it needs to finish a structural reorganization directed toward the internet. TambaBay.com's The Feed blog dug into the Loaf's financials, arguing that despite assurances to the contrary, it does appear as though debt accrued in the course of purchasing the City Paper and the Chicago Reader last year played a role in the bankruptcy.

It was just a couple weeks ago that we told you about Olsson's plans to shutter its Penn Quarter location -- which it finally did, on Friday. In an email to customers, owner John Olsson had said that "The landlord has other plans for the space," and we confirmed that those plans were to bring in UK noodle shop Wagamama. But the Post reported on Saturday that it looks like there's a lot more to that story than Olsson originally admitted: Olsson's is filing for Chapter 11 bankruptcy protection.

Last week, two of its biggest publishers, Random House and Penguin Group, as well as Hachette Book Group petitioned the U.S. Bankruptcy Court in Greenbelt to place Olsson's in involuntary Chapter 7 bankruptcy, which would force the company to liquidate.

Continue reading "Olsson's Filing for Bankruptcy"