Inner City Sale Plan To Be Heard By Court
February 21, 2012 at 4:00 AM (PT)
INNER CITY MEDIA's responded to the U.S. Attorney's opposition to the sale of its assets in bankruptcy by stating that the company "strongly believe(s) ... that the Proposed Sale is the appropriate and only viable path forward in these cases."
The filing admits that the proceeds will not be enough to pay the federal and state tax claims from the deal, "payment in full of all administrative expenses is neither a condition to approve a sale under section 363 of the Bankruptcy Code nor a requirement imposed by the extensive body of case law in this jurisdiction ... the Government offers no realistic alternative to the path laid out by the Debtors other than dismissal of the chapter 11 cases ... (which) would cause significant disruption and harm to the Debtors' operations and significantly impair going concern value."
INNER CITY's plan to sell the stations to a company formed by three of its debt holders would see the lenders pay $3 million to vendors, plus severance and unpaid vacation time to terminated employees and a bridge loan to keep the stations running. An hearing TODAY will consider the plan.