Black-owned Inner City Media Corp., founded by civil rights icon Percy Sutton, may end up under white ownership after billionaire Ron Burkle and others trying to force company into bankruptcy after talks fail with Pierre Sutton.
Another black owned media company could end up in the hands of a white owner. Inner City Media Corp., founded by the late Percy Sutton, could end up under the control of billionaire Ron Burkle through his Corporate Initiatives Fund II LP, as well to Drawbridge Special Opportunities Fund Ltd. and Fortress Credit Funding I LP through the bankruptcy court.
Three creditors asked a bankruptcy judge to put the parent of Inner City Broadcasting Corp into Chapter 11 after the owner of "urban" radio stations around the country, including WBLS and WLIB in New York, pulled out of a deal to restructure its debt.
In a filing Saturday with the U.S. Bankruptcy Court in Manhattan, Burkle's Yucaipa Corporate Initiatives Fund II LP, Drawbridge Special Opportunities Fund Ltd and Fortress Credit Funding I LP said they are owed $254 million by the parent, Inner City Media Corp.
The creditors said Pierre Sutton, the company's chairman and a son of Percy Sutton, scuttled a proposed prepackaged bankruptcy that would have paid unsecured creditors in full, and allowed a small payment to equity holders, which is unusual when a company is insolvent.
The creditors accused Pierre Sutton of rejecting the proposed deal to gain a bigger payout for himself, and ushering in new directors and replacing restructuring advisers who had recommended the prepackaged bankruptcy plan. Source: Reuters
Percy Sutton just rolled over in his grave. That would mean the Apollo Theater, a bastion of black achievement would no longer be black-owned.
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