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.
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Ben Eason