'American Idol' Producer Declares Bankruptcy
April 28, 2016 at 7:58 AM (PT)
CORE MEDIA GROUP, home of 19 ENTERTAINMENT’s “American Idol” and “So You Think You Can Dance,” was expected to file THURSDAY for Chapter 11 bankruptcy protection in NEW YORK, reports YAHOO!.
"The bankruptcy filing is supported by two of CORE’s key lenders," notes YAHOO! "CRESTVIEW PARTNERS and TENNENBAUM CAPITAL, which will assume ownership of the company from FOX and APOLLO following the completion of the Chapter 11 process. Discussions about the Chapter 11 filing have been under way with lenders for about a year, a CORE rep said."
“CORE MEDIA GROUP remains firmly committed to our mission as a global content and management company producing award-winning programming,” the company said. “In JUNE 2015, with the changing landscape and one of our flagship shows in transition, we proactively engaged in discussions with our lenders regarding balance sheet optimization alternatives and a strategic restructuring. The actions we are announcing today will help best position the company for the future, allowing for more flexibility and a platform for growth. CORE’s operating companies B-17 ENTERTAINMENT and SHARP ENTERTAINMENT are not part of the bankruptcy filing, they remain strong and will continue creating a wide variety of popular television shows for more than 30 broadcast, cable and digital networks. We expect to move through Chapter 11 expeditiously and have secured the full support of our first and second lien lenders.”