It sounds like a mess down at Equity Media Holdings, according to a comprehensive report at arkansasbusiness.com.
The Little Rock, Ark.-based company, owner of television stations in 41 markets (but with only 15 full-power stations), has filed for Chapter 11 bankruptcy. But a creditor has moved to change the case to an involuntary Chapter 7, raising the specter of liquidation.
It gets worse, according to the Web site. A complaint filed Dec. 2 against Equity alleges the company's management and members of the company's board of directors repeatedly acted in their own self-interest rather than in the interest of creditors.
It’s not clear from the story if those accused include Henry Luken III, Equity’s former CEO, who has purchased many of the company’s assets, including its Retro Television Network, while also owning a major interest in a yacht-building company. Luken did not return a call from TV Technology Wednesday seeking comment.
A hearing is scheduled for 9 a.m. Tuesday (Dec. 16) in U.S. Bankruptcy Court for the Eastern District of Arkansas, according to arkansasbusiness.com
According to the report, Silver Point Finance LLC of Greenwich, Conn., is seeking to recoup about $41.5 million it loaned to Equity. Silver Point says Equity will be unable to reorganize under Chapter 11 and can’t pay its workers.
There’s lots, lots more in the arkansasbsiness.com report, including names named and some creditors who might be left empty-handed.
Equity’s stock value keeps tanking. Above $5 per share after the stock launched in 2005, it fell below $1 in April 2008 and was down to 3.5 cents per share Wednesday afternoon.
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