Plum TV Files Chapter 11; Will Sell Assets

Plum TV, Inc., owner of the Plum Network of local cable channels serving upscale and resort markets around the country, announced Tuesday that it has filed chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York.

In conjunction with the chapter 11 filing, the company entered into an asset purchase agreement with an investor group led by Terry Mackin, president of Greenwich, CT-based ForesightLab, and Bill Apfelbaum, chairman of New York City-based Media Ventures Group. The company intends to move forward with submitting the agreement to the court to serve as the “stalking horse” bid for a court-supervised auction of the company’s assets under Section 363 of the U.S. Bankruptcy Code.

Under the terms of the asset purchase agreement the investor group would purchase substantially all of the company’s assets, subject to certain conditions, the completion of the auction process and the Bankruptcy Court’s approval. In addition, the investor group has agreed lend the company $1 million in debtor-in-possession financing.

“We want to reassure our audiences and advertisers that Plum TV remains in business and will continue to provide our daily programming throughout this process,” said Tom Scott, Plum TV founder and chairman. “Plum and its respective channels continue to enjoy strong brand identification in desirable markets.  With berths on cable systems serving these markets, coupled with the rapid growth of over-the-top video viewing and viewing of local content on mobile devices, the Plum Network of channels has strong distribution and viewer loyalty. 

“While a filing is a difficult choice, after a tough time for the company, it is the right choice,” Scott continued. “As longtime, visionary senior media executives, Terry and Bill have excellent track records and we believe the Plum TV brand will be well positioned when it emerges from the proposed asset sale.”  

Chapter 11 permits a company to continue normal operations while it develops a plan to reorganize or sell its assets. The company’s board of directors has determined that filing the chapter 11 cases and the proposed asset sale are in the best interests of the company, its creditors and other stakeholders. The debtor-in-possession loan will provide the company with sufficient capital to fund operations through the sale process.

Scott Williams, founder and CEO of brand development agency Scott Williams & Co., has been appointed chief restructuring officer. Before founding his firm, Williams was executive vice president and chief marketing officer of the luxury-hotel chain Morgans Hotel Group. Before that, he was senior vice president and chief creative officer for Starwood Hotels & Resorts Worldwide. Prior to the hospitality industry, Williams held executive positions within the media industry, including HBO, ESPN and, most recently, CBS Cable, where he was VP, program production and creative director.

The Plum TV, Inc. bankruptcy counsel is SilvermanAcampora located in Jericho, N.Y.