Creditors Attack Military Net

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Battle lines have been drawn by angry creditors of the
Military Channel, at least 10 of whom have allied in lawsuits in New York and Louisville,
Ky., alleging the network owes them nearly $600,000.

Meanwhile, the financially troubled niche programmer has
gone into stealth mode, with spokesman George Wright not returning calls late last week.

Separate actions were filed in U.S. District Court for the
Southern District of New York by Pat Kehoe's PK Network Communications, a marketing
firm; and by a group of at least 10 creditors, including the Cable Yellow Pages; Steve
Nelson, who produces in-hotel shows during the National and Western Shows; and Corrine
Beller, the former vice president of marketing at CTAM, who now heads a headhunter firm,
Schmitt Beller & Associates.

Kehoe said she was unaware of the other suit until after
she had filed. The creditors were awarded a judgment in New York last week that
effectively gave them the go-ahead to proceed with their case in Kentucky. Although the
Military Channel has a New York office, it is based in Louisville.

According to an article in the Louisville
Courier-Journal
two weeks ago, the Military Channel owed "about $574,000" to
such creditors as Pittard Sullivan Inc., which designed its logo and on-air graphics, and
Louisville law firm Stites & Harbison. The latter is owed more than $180,000.

Meanwhile, there was only a hint at the network's woes
on its Web site, which included the line, "Our apologies: Schedule temporarily
unavailable"

The 8 million subscriber network trimmed its staff in half
two weeks ago and suspended on-air operations in mid-July, barely one year after launch.

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