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
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
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.