Coda
by Staff -- Multichannel News, 1/11/2009 7:00:00 PM
Broadstripe Seeks Shelter
St. Louis — Broadstripe Communications, the former Millennium Digital Media, filed for Chapter 11 bankruptcy protection in Delaware but said in a statement it continues to talk with creditors about refinancing its debt.
Broadstripe, the St. Louis-based cable operator that changed its name from Millennium Digital Media in 2007, sought Chapter 11 protection on Jan. 2 in U.S. Bankruptcy Court for the District of Delaware. It listed Highland Capital Management — its controlling investor — as its largest creditor, owed more than $331 million. Other creditors include Credit Suisse International (owed $28.8 million); JP Morgan Chase ($13.6 million) and National Bank TV Co-Op ($3.6 million) according to bankruptcy court documents.
Broadstripe has about 93,000 subscribers in systems in Michigan, Maryland, Washington and Oregon. In 2006, after a capital infusion from Highland Capital, it embarked on an acquisition strategy, agreeing in November 2007 to buy James Cable for $125 million. But that deal apparently hasn’t closed.
The James Cable deal was the first in what was supposed to be a series of acquisitions spearheaded by former CEO William Shreffler. Back in October 2006, shortly after it received the investment from Highland Capital, officials said the company would make moves to grow its footprint substantially.
That plan began to unravel as the economy worsened and credit markets tightened, severely limiting the deal market. In July, Shreffler announced his resignation and one month later the company hired former mobile telecom executive Gustavo Prilick to take his place.
In the bankruptcy filing, Broadstripe estimated that it had assets worth between $100 million and $500 million and liabilities of between $100 million and $500 million.
According to the filing, Broadstripe named FTI Consulting senior managing director Stephen Dubé as its chief restructuring officer to help with the turnaround.
In a statement posted on the company’s Web site, Prilick said the company filed for Chapter 11 protection to strengthen its balance sheet and restructure its financial obligations. The CEO added that the process is expected to take a period of months but should be completed in 2009. The company has secured about $15 million in debtor-in-possession financing from affiliates of Highland Capital to allow it to continue to operate smoothly during the process, according to bankruptcy court documents.
“Broadstripe’s agreement with its lenders affords us a significant head start and gives Broadstripe a clear path toward exiting Chapter 11,” Prilick said in the statement.
— Mike Farrell
Nick Digs 'Madagascar’ Birds
Los Angeles — The penguins from DreamWorks Animation SKG movie franchise Madagascar have broken out as stars of their own series, the first product of a deal between Nickelodeon and the animation shop.
Nickelodeon president Cyma Zarghami said the channel has already doubled its order, to 52 episodes. The Penguins of Madagascar will debut after Nick’s Kids Choice Awards, hosted by Dwayne “The Rock” Johnson, on March 28 at 9:30 p.m.
Jeffrey Katzenberg, the CEO of DreamWorks Animation SKG, called this one of the first output deals for his company in which a second season was ordered before the first even airs. Zarghami cited the “unprecedented level of quality” — comparable to the theatrical version — for the channel’s enthusiasm for the show.
Nick “sneaked” a look at parts of the new series over the Thanksgiving weekend and the content drew an average of 14 million viewers.
The show features the penguins living in New York City’s Central Park Zoo — Kowalski, Rico, Private and their leader, Skipper, voiced by Tom McGrath, creative consultant to the series and the director of the theatrical film. McGrath called the voice “a poor man’s Robert Stack,” joking that the actor’s death created a whole new career for McGrath as a voice-over artist.
Producers said other Madagascar characters could show up in the series, specifically citing the hippo (voiced in the film by Jada Pinkett Smith). Julien, the king of the lemurs, is in the series but not voiced by Sascha Baron Cohen.
Also in development is a series based on DreamWorks’s Kung Fu Panda, featuring the panda Po.
— Linda Haugsted
DirecTV Irked Over Comcast RSN Hikes
Philadelphia — A license-fee dispute between DirecTV and Comcast last week, over two regional sports networks owned by the cable operator, could be headed to arbitration.
Derek Chang, executive vice president of content strategies at DirecTV, says the satellite provider’s contracts with Comcast SportsNet New England and Comcast SportsNet Bay Area expired on Dec. 31 and that both RSNs are seeking sizable license fee hikes. DirecTV, which continued to air both RSNs, might seek baseball-style arbitration as redress, under a provision tied to Comcast and Time Warner Cable’s purchase of Adelphia Communications in 2006.
Chang said Comcast SportsNet Bay Area plans on shifting Oakland A’s Major League Baseball games and San Jose Sharks National Hockey League contests to Comcast SportsNet California. “In New England, Comcast wants 25% more for the same product, and 40% in the Bay Area, where they’re planning to air more than 30% fewer pro team telecasts,” he said.
Comcast SportsNet said in a statement, in part: “We continue to negotiate in good faith and have put a fair offer on the table that reflects the growing value of our network.”
— Mike Reynolds
Discovery ID’s Zahn For Development Deal
Los Angeles — Investigation Discovery Friday said it has signed former CNN journalist Paula Zahn to a production deal.
Under the agreement, Zahn, who currently co-anchors an arts show for PBS, along with producing partners Scott Weinberger of Weinberger Media and Scott Sternberg of Scott Sternberg Productions will develop a weekly investigative newsmagazine series for ID. If ID greenlights the as yet named series, it will debut in 2009, and Zahn will become network talent for ID. The deal comes less than a month after Discovery parted ways with former ABC Nightline host Ted Koppel.
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