CORE Media Group's Plan of Reorganization Confirmed

September 23, 2016

The plan of reorganization was confirmed less than five months after filing.

Willkie successfully represented independent content and management company CORE Media Group, a joint venture owned by 21st Century Fox and Apollo Global Management, and 47 of its affiliates, in confirmation of their prenegotiated chapter 11 plan of reorganization less than five months after its chapter 11 filing.  The company has produced, through its 19 Entertainment affiliate, award-winning reality programming including American Idol and So You Think You Can Dance.

CORE’s plan of reorganization was the culmination of months of negotiation both pre- and postpetition and was ultimately supported by 100 percent of the company's prepetition secured lenders. The plan also reflected a global settlement with the unsecured creditors' committee. All objections to the plan were resolved prior to the confirmation hearing. The confirmed plan will significantly de-lever the debtors by more than $385 million. In addition, the two largest lenders, Tennenbaum Capital Partners and Crestview Media Advisors, have agreed to reinvest approximately $18 million in the debtors through a rights offering.

General unsecured creditors will receive a pro rata share of (i) an interest in a litigation trust; and (ii) a cash distribution in the aggregate amount of $2,375,000 on account of their allowed claims. Willkie also worked closely with its London office to successfully seek recognition of the U.S. proceedings.

The matter was handled by a cross-border, multidisciplinary team including bankruptcy partners Matthew Feldman, Paul Shalhoub and Graham Lane; corporate partners Mark Cognetti and Jeffrey Goldfarb; litigation partner Matthew Freimuth; employee benefits partner Mark Holdsworth; tax partner Christopher Peters; counsel Robin Spigel; and associates Andrew Mordkoff, Gabriel Brunswick, Gail Hyman, Jason St. John, Jonathan Kubek, Iben Madsen, Rachel Dooley, Rose Ohanesian, Ransel Potter, Elizabeth Roache, Kathryn Ranieri, Allison Klein and Edward Torres.