Core Media’s bankruptcy saga continues to wind it’s way through the courts. A bankruptcy judge has signed off on Core Media Group’s restructuring plan. Part of the plan is a $6 million dollar payout to Idol creator Simon Fuller to end his consulting deals with the company.
U.S. Bankruptcy Judge Stuart Bernstein has signed off on Core Media Group’s plan for reorganization after the company filed for Chapter 11 upon the cancelation of American Idol and a fight with Idol creator Simon Fuller.
Ultimately, Core — whose subsidiaries produce other unscripted fare like Man v. Food, Extreme Couponing and My Crazy Obsession — was able to make deals that de-levered its debt by more than $385 million. TCP and Crestview, gaining equity stakes, would also reinvest about $18 million in the reorganized company, according to court papers supporting the plan.
Although all of the biggest creditors voted to approve the plan, it nevertheless drew objections from Dick Clark Productions, seeking assurances that agreements would be assumed, as well as a range of former Idol stars including Carrie Underwood, Adam Lambert, Kellie Pickler and Philip Phillips (who continues to be in litigation with the company).
Perhaps the most vocal objector was Fuller, whose demand for payments and threat of winding-up proceedings on Core affiliate 19 Entertainment helped spur the Chapter 11 case in the first place.
Fuller has been eyeing fraud claims, and his motion for discovery prompted Core to get the judge to agree to terminate consulting agreements that gave him a 10 percent profit share from Idol (which still is on air in international territories) as well as So You Think You Can Dance.
Judge Bernstein reportedly gave his nod to the reorganization plan at a hearing on Thursday when the attorneys revealed a deal allowing Fuller a $6 million claim to cure the end of his consulting deals.
Interesting that several Idols were namechecked as if they objected to the plan? Also, it looks like Simon Fuller has lost the fight to take back the shows he created.