Equity Media requests two-month exclusivity extension to auction off television assets

By Caroline Salls

Pittsburgh, March 11 - Equity Media Holdings Corp. requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Arkansas.

The company wants to extend its exclusive plan-filing period to June 16 from April 7 and the solicitation period to Aug. 14 from June 5.

According to the motion, Equity Media is negotiating stalking horse agreements in connection with the proposed sale of its television stations.

The company said the results of the auction for the station assets will give it a better idea of the value of the television stations.

"Until the debtors know which stations will be sold - and at what price - it will be difficult to estimate creditor recoveries, provide meaningful disclosures to creditors to enable them to evaluate a potential plan of reorganization, or know which stations and/or assets will be available to reorganize around," the company said in the motion.

Equity Media, based in Little Rock, Ark., owns and operates television stations. The company filed for bankruptcy on Dec. 8, and its Chapter 11 case number is 08-17646.

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