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CORE Media hits out at Simon Fuller’s intervention in its bankrupcty

By | Published on Friday 5 August 2016

CORE

A spokesman for ‘Idol’ owner CORE Media has commented on a legal filing made earlier this week by the talent show franchise’s original creator Simon Fuller, criticising the industry veteran for trying to interfere with the firm’s chapter eleven bankruptcy proceedings.

As previously reported, CORE is the TV company that began life as CKX, the former business of Robert FX Sillerman. It acquired Fuller’s 19 Entertainment company in 2005 and with it both the ‘Idol’ franchise and another TV show he created, ‘So You Think You Can Dance’.

Both Sillerman and Fuller left the company after a few years, though the latter continued to consult on the TV franchises he had helped created. Then earlier this year CORE announced it was applying for bankruptcy protection in the US, reportedly after Fuller demanded that millions in allegedly unpaid consulting fees be paid.

The company has been working its way through the so called chapter eleven proceedings ever since, but Fuller intervened in that process earlier this week, seemingly unhappy with the plans that have been made to take the company out of bankruptcy.

He filed an ex parte motion with the bankruptcy court seeking access to information about CORE Media’s affairs, while raising the prospect of future claims over alleged fraudulent transfers and breach of fiduciary duty.

But CORE has accused Fuller of trying to interfere with plans made by the “official committee” that was charged with the task of restructuring the business in order to take it out of bankruptcy and assure the media company’s long-term future.

A spokesman told CMU yesterday: “After extensive investigation and constructive negotiations, CORE Media is pleased with the agreement it successfully reached with its official committee acting on behalf of the unsecured creditors. Mr Fuller’s attempt to circumvent the process and disregard the work of the official committee is disappointing. CORE Media remains focused on its upcoming plan confirmation and the swift completion of its restructuring”.

It remains to be seen how the court responds to Fuller’s motion.



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