Ben Eason Offers CL Managers Equity If They Join Bid for the Company
By AAN Staff
august 12, 2009 02:57 pm
The Creative Loafing CEO tells the
Chicago Reader he is working on a bid for the company that consists of three components: Eason and his family; BIA Digital Partners, who CL owes $10 million; "and managers from all across the company." Eason says the idea is to couple the pay cuts taken by the 25-30 managers with an offer of equity in the company and a chance to join the bid. "If it loses, Eason says, they'll be paid their deferred salaries out of auction proceeds," the
Reader reports. "Managers who remain on the sidelines will get paid back either way." The idea is one way Eason hopes to set his bid apart from the bid expected from Atalaya Capital Management, CL's main creditor. He hopes the show of unity will impress the bankruptcy judge, who will hold the auction for the six-paper chain on Aug. 25. "You've got managers clearly invested in the business, in continuing to run the business, and in looking to keeping it going," Eason says.
MORE: In other CL news, a Chicago blogger
gives his in-depth analysis of the company's value.
