Equity Media trustee granted OK of directors and officers settlement

By Caroline Salls

Pittsburgh, March 19 - Equity Media Holdings Corp.'s Chapter 7 trustee received court approval of a $5.5 million settlement with the company's former directors and officers, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Arkansas.

The settlement is to be paid by the directors' and officers' liability insurance policy.

The 16 former officers and directors accused of breaches of fiduciary duties to Equity Media and to creditors, corporate waste and negligence include Richard Rochon, Robert B. Becker, Larry Morton, Manuel Kadre, John E. Oxendine, Michael W. Pierce, Robert C. Farenhem, Jacob J. Barker, Michael T. Flynn, James Hearnsberger, Patrick Doran, Glenn Charlesworth, Gregory W. Fess, Lori Withrow, Mario B. Ferrari and Henry G. Luken III.

Also included were claims for avoidance and recovery of fraudulent transfers against Oxendine, Pierce and Becker.

The settlement emerged during court-ordered mediation sessions, according to court documents.

Equity Media's largest creditor, Silver Point Finance, LLC, supports the terms of the agreement and the settlement of the disputes between the parties, according to the motion.

Based in Little Rock, Ark., Equity Media owns and operates television stations. The company filed for bankruptcy on Dec. 8, 2008, and its Chapter 11 case number is 08-17646.

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