On Friday, a jury in U.S. District Court in Little Rock, Ark., found that the transfer of Equity Media Holdings Corp.’s Retro Television Network to Equity’s Chairman-CEO, Henry Luken, for $18.5 million “was a constructively fraudulent transfer,” as alleged by Equity’s bankruptcy trustee. The jury awarded $47.4 million to the bankruptcy trustee. Luken Communications LLC turned around and on Sunday filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Chattanooga.
Henry Luken, head of RTN parent Luken Communications, says the purchase is the first step in a plan to acquire around 400 translators and low-power stations so that its affiliates will have ample bandwidth to broadcast Luken’s 10 existing and planned multicasting networks.The seller of the translators is David Honig’s Minority Media and Telecommunications Council. The price: $390,000.
