Tropicana Entertainment is poised as the first major casino company to emerge from Chapter 11 bankruptcy later this month after nearly 2 years of restructuring and negotiations. The company’s debt has been discharged and Tropicana’s new owner, Carl Icahn is infusing the company with $150 million to pay creditors and upgrade casino properties.

The corporation’s drop into bankruptcy …

Tags: Casinos Chapter 11 Bankruptcy Reorganization Tropicana Entertainment

The independent licensee and distributor of entertainment programming in North America, Image Entertainment Inc., may need to file Chapter 11 bankruptcy after defaulting on a payment under a convertible note.  The company defaulted on an installment payment of $4 million due on Dec. 14, for its $15.7 million convertible note. The company also said that the default could adversely affect its business and they are hoping to continue …

Tags: Chapter 11 Title 11 United States Code Debt Default Image Entertainment

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… the company took on a substantial amount of debt in 2005 when the company purchased Hollywood Entertainment Corp.  Hollywood Entertainment Corp. ran the popular Hollywood Video chain.

 

The bankruptcy is still up in the air, because Movie Gallery is looking to file a prearranged bankruptcy.  That means lenders will have to make an initial agreement on the terms of the bankruptcy before the company is allowed to file.  Prearranged bankruptcies are popular with corporations because …

… paying $3.7 billion in debt.

Many media companies, including Time Warner Inc and Lions Gate Entertainment Corp, have put in bids for MGM, along with separate offers from private equity firms, the sources said. But not all the 12 companies that signed confidentiality agreements to look at MGM’s books over the past month have put in bids, they added.

The bids are all non-binding and came in under $2 billion which is far less than enough to repay the company’s debts.  MGM’s …

Muzak Holding LLC a music and entertainment company which provides background music in stores, hotels and elevators just received approval of its Chapter 11 bankruptcy reorganization plan and hopes to exit Chapter 11 bankruptcy in late January.  The company, which filed for bankruptcy protection in February to restructure maturing debt, was able to slash its debt burden to less than half of what it was when it originally …

The Consumer Law & Policy blog has a very revealing article about a judge in Indiana that took it upon herself to give indigent debtors a choice–”pay up” or “go to jail.”

The blog writer provided the transcript of an exchange between the debtor and the judge:

The Court: “So we’re here today for you to explain what you’re going to do to pay this off.”

Mr. Button: …

Comment by Faith-Magdalene Austin: … to use most of the entertainment facilities (Zoo, …

… for Chapter 11 bankruptcy.

The downturn in the economy has hit all industries; but many entertainment companies are getting hit hard as consumers pull back on spending. The possible bankruptcy of Six Flags Inc. is just another blow to this already battered industry. A Six Flags bankruptcy could have far reaching effects in Texas causing job losses at the theme park and other businesses that depend on it for their survival.

… debt payment deadline looms nearer.

Usually, during an economic downturn economically viable entertainment companies are spared bankruptcy; but not always. If Sirius XM does go into bankruptcy we can take it as a bad omen for other entertainment companies (especially small/medium sized) who are on shaky ground. One of the casualties overlooked by lawmakers and some economists during an economic downturn is that when many small and medium sized companies get hit with bankruptcy, they push …