CL ruling today

Creative Loafing Inc. management, employees and creditors will find out shortly after 2 p.m. who will control — for the time being — the parent company of CL/Atlanta and five other weekly newspapers. That’s when Bankruptcy Court Judge Caryl Delano has scheduled an announcement of her decision on a motion by the main creditor, Atalaya Capital Management, to effectively take control of the company.

This is just one motion in CLI’s Chapter 11 bankruptcy case, so the larger battle for control will continue if the judge rules against Atalaya’s motion. Bankruptcy attorneys I’ve spoken to say it’s unusual for a “debtor-operator” (such as CLI’s current management) to loose control at this relatively early stage in the game.

If DeLano rules in favor of Atalya, the New York-based hedge fund promises to bolster operations.

If  current CEO Ben Eason retains control, he says he’ll move forward with his “Digital Transformation Strategy,” which calls for continuing to shrink the papers. He’ll have to continue to use the company’s resources to battle for his interests in bankruptcy court.

(Beware, my bias: Eason fired me as part as Creative Loafing editor in Atlanta over cuts he wanted to make to Editorial Department.)

Related posts:

1. Eason keeps control Bankruptcy Judge Caryl Delano ruled today against a motion by...
2. CL employees to judge: What about us? A bankruptcy judge must now weigh the Eason family's legacy...
3. CL reality show: next week! Will the investment bank gain control? Will Ben Eason get...
4. Not easy on Eason Creative Loafing Inc. CEO Ben Eason had a rough day...
5. Atalaya: Keep CL alive Creative Loafing would get more resources if control was taken...

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