Inner City Asks Court For Access To Borrowed Cash While Sale Pends
March 21, 2012 at 4:23 AM (PT)
While it awaits sale of its stations, INNER CITY MEDIA CORP. and its affiliates have petitioned the U.S. Bankruptcy Court in an emergency motion for post-petition financing, asking for interim access to $1.6 million of cash from $3 million total under a debtor-in-possession facility "to make necessary deposits for the new headquarters lease, purchase equipment required for the relocation, and begin construction of modifications to the new office and studio space immediately."
The motion notes that the sale of the stations could take several months while FCC approval is pending, and that "the continued viability of the Debtors' business and the success of the Sale depends on obtaining access to financing."
The proposed debtor-in-possession facility is being offered by YUCAIPA CORPORATE INITIATIVES FUND II, LP, YUCAIPA CORPORATE INITIATIVES (PARALLEL) FUND II, LP, and FORTRESS CREDIT CORP. YUCAIPA, FORTRESS, and DRAWBRIDGE CAPITAL, as YMF MEDIA, are acquiring the stations in exchange for the debt they are owed by INNER CITY.