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Tuesday, September 30, 2008

Creative Loafing Files Chapter 11

Then: Now:

The Atlanta Business Chronicle is reporting that Creative Loafing THE free alternative weekly, and a publication that cultivates love of culture and art in this market is filing for bankruptcy protection.

They've shown much love to the Atlanta Film Festival--including 2008 Best of is our hope they make it through these troubled times.

It would be HUGE loss:

Creative Loafing files for bankruptcy protection

Atlanta Business Chronicle

With a $40 million loan default looming, Creative Loafing Inc., the parent company of a local alternative weekly in Atlanta of the same name, filed for Chapter 11 bankruptcy protection Monday.

According to the filing with the U.S. Bankruptcy Court’s Middle District of Florida, Creative Loafing reported estimated assets of between $10 million and $50 million and liabilities of the same amount.

The bankruptcy filing comes the same day Creative Loafing sued Atalaya Administrative LLC, Atalaya Funding II LP and BIA Digital Partners SBIC II LP asking a judge to stop a default on $40 million loan. In the suit, filed with the same court, Creative Loafing said the lenders failed to act in good faith when they refused to negotiate lowering the financial covenants. Without the injunction, Creative Loafing says it has no other options in stopping the default, as it would be “too late to save the debtors’ businesses, reputation, and close-knit and effective management.”

Read entire story here.

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