NEW YORK, Dec. 12, 2016 (GLOBE NEWSWIRE) -- Scout Media Inc., (“Company”) announced today that it has commenced a sale process (“transaction”) and is currently in discussions with numerous interested parties. To facilitate the transaction, the Company and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The petitions were filed on December 8, 2016 in the U.S. Bankruptcy Court for the Southern District of New York. During these proceedings, the Company will continue to operate in the ordinary course of business.
“This culminates months of hard work and puts a difficult chapter behind us,” said Craig Amazeen, President of Scout. “Over the past six months, we have refocused the company and stabilized the business. Through this process, we will be able to rectify our tenuous financial position and find a buyer who recognizes the value of the business and its incredible potential. With a strong core business and the liquidity necessary to carry out this process, Scout will carry on its recent ascension into the dominant sports media company we all believe it will be.”
Scout has determined that a sale through the Chapter 11 process under Bankruptcy Code section 363 is in the best interest of the Company, its employees, publishers, customers, and other creditors and stakeholders. The Company has received a debtor-in-possession financing commitment of up to $6.2 million from its existing lender, Multiplier Capital to fund ongoing operations during this time.
“Our day-to-day business operations will remain the same,” Amazeen continued. “Scout is a content machine, on a proprietary platform, serving millions of users a month. This relationship between publishers and their users will remain uninterrupted.”
Womble, Carlyle, Sandridge & Rice is acting as legal counsel and Sherwood Partners is providing financial advisory services.
For access to Court documents and other general information about the Chapter 11, please visit http://dm.epiq11.com/ScoutMedia.
Source: Scout Media