Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Core Media Group decides to file for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: June 17, 2016
Key Contacts
Back
American Idol’s production company, Core Media Group, files chapter 11
It was recently announced that Core Media Group, the company that produces “American Idol” and “So You Think You Can Dance,” had filed for Chapter 11 bankruptcy protection. According to the New York Times, the company cited low ratings for “American Idol,” its flagship franchise, in its decision to file for bankruptcy protection.
Core Media Group falls into insolvency
“American Idol” recently ended its 14-year run after its ratings began to decline significantly from 30 million viewers in 2006 to only 13.3 million this year. With its ratings drop, the show failed to maintain its financial performance as well, which led to the Fox Network cancelling the show this year.
In its court documents, the company also stated that its advertising revenues had fallen due to major sponsors such as Coca-Cola and AT&T pulling out of the show. American Idol also saw a precipitous drop in its re-broadcast fees as the result of a significant reduction in airtime with its initial collapse in ratings.
As a result of these recent financial struggles, American Idol lost $35.6 million in 2015, compared to 2014. This was particularly problematic because the show had dropped $15 million in 2014 versus 2013.
Notable debtholders
According to its bankruptcy petition, the company listed $73 million in assets and $512 million in liabilities, including $398 million owed for loans and back payments to former employees and investors. In turn, $400 million of the company’s debt belongs to two loans made by secured creditors, which included $209 million in a senior loan debt provided by Tennenbaum Capital Partners LLC, Bayside Capital Inc. and Hudson Bay Capital Management LP as well as a $189 million second-lien loan debt to Crestview Media Investors LP, according to a Variety report cited by Reality TV World. The bankruptcy papers also listed Sony Music Entertainment and CBS as debtholders.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
For more posts dealing with media companies filing for Bankruptcy, check out:
- SFX Entertainment Inc. Files for Chapter 11 Bankruptcy Protection
- Freedom Communications Inc files for Chapter 11 Bankruptcy Protection
- Caesars Reaches Restructuring Deal with Senior Lenders
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.