AAN News » Industry News
   

Two New Motions Filed in Creative Loafing Bankruptcy Case

By AAN Staff
november 17, 2008  12:11 pm
Last week, Creative Loafing asked a bankruptcy judge to authorize CEO Ben Eason to hire the investment banking firm that brokered the Reader/City Paper purchase to evaluate the company's business plan, seek new financing, and prepare the company to be sold if necessary, Atlanta Magazine's Steve Fennessy reports. Meanwhile, Eason's largest creditor, Atalaya Capital Management, asked the judge to lift the automatic stay that prevented CL from defaulting on its loan, arguing that the value of the company is falling with each passing day due to the bankruptcy filing and to "downward trends in the advertising industry." Eason tells Fennessy he stands by his decision to expand. "I think it's one of the smartest things we've done," he says. "I'd rather be navigating [the economic downturn] with Washington City Paper and Chicago Reader and [syndicated column] Straight Dope than without them." MORE: The Reader's Michael Miner weighs in, and City Paper consolidates its office into one floor.
View full article at Atlanta Magazine
Tags: , , , , , , , , , , , ,