Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Creditors Try to Push Scout Media to File for Bankruptcy
Author: Joel R. Glucksman
Date: December 19, 2016
Key Contacts
Back
Scout Media has had a bit of a turbulent year. In July, The New York Post reported that the company fired former CEO Jim Heckman. An email sent to its publishers stated that the board of directors maintained Heckman had “advanced his own personal interests at the expense of the company’s.”
Recently, three of Scout’s creditors filed an involuntary bankruptcy petition against the company in U.S. Bankruptcy Court in New York, claiming the media company owes them approximately $800,000, according to The Wall Street Journal.
The creditors’ filing
The Journal noted the creditors, one of which includes LSC Communications, said the online sports publishing company hasn’t paid its bills. LSC claimed Scout Media owes it a judgment of $672,000 for printing services. On Safar Foods and Imatch Services LLC were also behind the bankruptcy petition.
An involuntary bankruptcy occurs when three or more creditors of a company file a bankruptcy petition in court without the debtor’s permission. The bankruptcy court must then determine if the debtor “is generally not paying [its] debts as such debts become due unless such debts are the subject of a bona fide dispute.” Only if the court makes such a finding is the debtor adjudicated to be in bankruptcy. TheStreet corresponded with Scout Media President Craig Amazeen via email, who assured readers that Scout Media’s network will continue to publish content.
“We have no comment at this time other than to say Scout’s best-in-class network of publishers will continue to provide the premium content and dynamic communities that our millions of users know and love,” Wrote Amazeen.
The company’s rough history
Given the number of changes at Scout Media in recent months, it’s not surprising its creditors have taken action. The Journal noted Pilot Group, a private equity fund owned by Bob Pittman, acquired Scout Media from Fox Sports in 2013. After purchase, Pittman added Scout Media into the North American Membership Group, a collection of publications that cater to adult males (Scout Media publishes news regarding college football and basketball).
Pittman actually appointed Heckman as the CEO shortly after buying Scout Media, according to The Journal. However, as mentioned above Heckman was fired for apparently abusing his access to the organization’s funds, using them to bankroll personal expenses.
Awful Announcing receives messages
Awful Announcing received several messages after the board of directors fired Heckman. The first was from the board itself, explaining the situation. The second was written by Heckman, who claimed the board of directors’ letter was fake. Finally, the magazine received an email from Scout’s Platform team, which stated all of its members had resigned en masse, among other things:
- Russian investors allegedly tried to seize control of the board.
- Scout had failed to deliver paychecks online and provide platform team members with equity stakes.
- The company had neglected to install capable upper management to maintain operations.
The situation is quite complicated, and in the words of Awful Announcing’s writers, “bizarre.” As it turns out, Heckman is still one of Scout’s chairmen, so the situation isn’t as clear as one might think.
Revisiting the involuntary bankruptcy filing, TheStreet noted LSC actually brought Scout Media to court in November of last year, claiming the latter had failed to pay the creditor $712,000 for catalog printing. We’ll continue to follow the story to see how the situation at Scout media develops.
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.
- Practices: Bankruptcy & Creditors' Rights
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
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
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.
Creditors Try to Push Scout Media to File for Bankruptcy
Author: Joel R. Glucksman
Scout Media has had a bit of a turbulent year. In July, The New York Post reported that the company fired former CEO Jim Heckman. An email sent to its publishers stated that the board of directors maintained Heckman had “advanced his own personal interests at the expense of the company’s.”
Recently, three of Scout’s creditors filed an involuntary bankruptcy petition against the company in U.S. Bankruptcy Court in New York, claiming the media company owes them approximately $800,000, according to The Wall Street Journal.
The creditors’ filing
The Journal noted the creditors, one of which includes LSC Communications, said the online sports publishing company hasn’t paid its bills. LSC claimed Scout Media owes it a judgment of $672,000 for printing services. On Safar Foods and Imatch Services LLC were also behind the bankruptcy petition.
An involuntary bankruptcy occurs when three or more creditors of a company file a bankruptcy petition in court without the debtor’s permission. The bankruptcy court must then determine if the debtor “is generally not paying [its] debts as such debts become due unless such debts are the subject of a bona fide dispute.” Only if the court makes such a finding is the debtor adjudicated to be in bankruptcy. TheStreet corresponded with Scout Media President Craig Amazeen via email, who assured readers that Scout Media’s network will continue to publish content.
“We have no comment at this time other than to say Scout’s best-in-class network of publishers will continue to provide the premium content and dynamic communities that our millions of users know and love,” Wrote Amazeen.
The company’s rough history
Given the number of changes at Scout Media in recent months, it’s not surprising its creditors have taken action. The Journal noted Pilot Group, a private equity fund owned by Bob Pittman, acquired Scout Media from Fox Sports in 2013. After purchase, Pittman added Scout Media into the North American Membership Group, a collection of publications that cater to adult males (Scout Media publishes news regarding college football and basketball).
Pittman actually appointed Heckman as the CEO shortly after buying Scout Media, according to The Journal. However, as mentioned above Heckman was fired for apparently abusing his access to the organization’s funds, using them to bankroll personal expenses.
Awful Announcing receives messages
Awful Announcing received several messages after the board of directors fired Heckman. The first was from the board itself, explaining the situation. The second was written by Heckman, who claimed the board of directors’ letter was fake. Finally, the magazine received an email from Scout’s Platform team, which stated all of its members had resigned en masse, among other things:
- Russian investors allegedly tried to seize control of the board.
- Scout had failed to deliver paychecks online and provide platform team members with equity stakes.
- The company had neglected to install capable upper management to maintain operations.
The situation is quite complicated, and in the words of Awful Announcing’s writers, “bizarre.” As it turns out, Heckman is still one of Scout’s chairmen, so the situation isn’t as clear as one might think.
Revisiting the involuntary bankruptcy filing, TheStreet noted LSC actually brought Scout Media to court in November of last year, claiming the latter had failed to pay the creditor $712,000 for catalog printing. We’ll continue to follow the story to see how the situation at Scout media develops.
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.