Creditors are trying to change Equity Media Holdings Corp.’s voluntary Chapter 11 bankruptcy to involuntary Chapter 7 or dismiss Equity’s bankruptcy case entirely, in an effort to push for a liquidation of the company’s assets.
Arkansasbusiness.com reports a hearing is scheduled for 9 a.m. Tuesday in U.S. Bankruptcy Court for the Eastern District of Arkansas. A complaint against Equity claims the company’s management and members of the board of directors repeatedly acted in their own self-interest rather than in the interest of creditors. A liquidation of the assets could take anywhere between 6 to 18 months.
Equity Media Holdings Corp. filed for bankruptcy on Monday after defaulting on a $41.5 million loan. According to Bloomberg, the company listed assets of more than $100 million vs. more than $50 million in debt in its Chapter 11 petition.
The company has 121 low and full power English and Spanish-language stations around the country and 15–year affiliation agreements with Univision, which owns approximately 8% of Equity Media.