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Alpha Media Gets OK For $267M Chapter 11 Plan
Law360 (April 1, 2021, 5:09 PM EDT) A Virginia bankruptcy judge on Thursday approved radio chain Alpha Media s $267 million Chapter 11 plan, overruling arguments by the U.S. Trustee s Office that creditors weren t given sufficient opportunity to reject the plan s legal releases.
At a virtual hearing, U.S. Bankruptcy Judge Kevin Huennekens signed off on Alpha Media s restructuring plans over the U.S. trustee s objections, noting that most of the creditors the trustee said should have been better informed of their ability to opt out of the legal releases have no reason to object to the plan.
Alpha Media Gets OK For Vote On $115M Ch 11 Plan
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UnitedLex fights back against claims in LeClairRyan bankruptcy litigation
BizSense file)
The battle over potentially millions of dollars for the bankruptcy estate of collapsed Richmond law firm LeClairRyan continues to play out.
Legal services giant UnitedLex, which formed a controversial joint venture with LeClairRyan leading up to its dissolution, wants the bulk of the claims filed against it last fall by the law firm’s bankruptcy trustee to be dismissed, or at the very least transferred to a different court where it could have a chance to argue its case in front of a jury.
UnitedLex, as well as the ULX Partners joint venture entity, was accused last fall by trustee Lynn Tavenner of keeping the law firm alive longer than it should have in order to “improperly and unfairly extract millions of dollars from the estate, to the detriment of LeClairRyan’s creditors.”
Just a month after filing to reorganize under Chapter 11, Guitar Center Inc. has emerged after ridding its balance sheet of about $800 million in debt.
The Westlake Village musical equipment retailer has entered agreements to receive up to $165 million in new equity financing from stakeholders Ares Management Corp. in Los Angeles, hedge fund Brigade Capital Management and private equity firm Carlyle Group. The three firms now own 100 percent of the common stock in Guitar Center.
The company also raised $375 million by entering a new secured asset-based revolving financing facility funded by Wells Fargo and JPMorgan, and another $350 million – up from the expected $335 million – by selling new senior secured notes. That adds up to about $890 million in operating capital.
By Jonathan Randles Guitar Center Inc. has been cleared to exit bankruptcy with a plan to cut about $800 million in debt and provide the nation s largest seller of musical instruments with an infusion of cash to navigate the pandemic and holiday shopping season. Judge Kevin Huennekens of the U.S. Bankruptcy Court in Richmond, Va., said Thursday he would confirm Guitar Center s prepackaged chapter 11 plan, paving the retailer s path to get in and out of bankruptcy in less than a month. Guitar Center, which entered chapter 11 with more than $1.3 billion in debt, anticipates emerging from bankruptcy as soon as next week, a company lawyer said.
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