Bankruptcy judge orders FBN radio network to liquidate.Bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most judge orders FBN FBN Fly By Night FBN Fictious Business Name FBN Furniture Brands International, Inc. (stock symbol) FBN Florida Board of Nursing FBN Fibrillin FBN First Bank of Nigeria Plc FBN File Box Number FBN Federal Base Networks radio network to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the A U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. judge put financier Glen Taylor's Financial Broadcasting Network and two subsidiary companies in Chapter 7 liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy May 23 to pay off close to 200 creditors. "It certainly was a shame that it didn't get off the ground," said former FBN executive Don Miller, who left the company in the fall of last year. "It was having trouble paying its bills when I left and that is why I left." The Century City-based radio companies of FBN have been in Chapter 11 reorganization since November, when 10 former employees tried to force them into an involuntary involuntary adj. or adv. without intent, will, or choice. Participation in a crime is involuntary if forced by immediate threat to life or health of oneself or one's loved ones, and will result in dismissal or acquittal. INVOLUNTARY. liquidation. The former employees claimed they had not been paid for nearly two months and were each owed between $2,000 and $9,500. The court denied the employees' petition, but FBN filed Chapter 11 bankruptcy papers to protect itself from an onslaught of creditors. Attorney Dale Thrus, who represented FBN at the five-minute hearing May 23, did not fight what was apparently inevitable. He told Judge Alan Ahart that despite the company's best efforts, it has been unable to mount a financial comeback Comeback Australian breed of wool sheep, bred by crossing Merino with Corriedale, Polwarth or Zenith sheep; wool is 21 to 25 microns. It is a registered breed, but the term is more commonly used in the sense of a type of sheep produced by crossbreeding a crossbred Merino back to Merino. . The judge then converted the companies to Chapter 7. Ahart's ruling came as no surprise. A March 16 trustee hearing revealed that FBN and its subsidiaries -- Financial Business News Inc. and Financial Radio Network Inc. -- were virtually broke. Taylor, founder of the companies, revealed during questioning at the trustee hearing that FBN had only $5,000 left in the bank, despite having recently received a $150,000 loan from its parent company, Financial Communications Corp. Miller, who is also former publisher of the Business Journal, said he believes FBN would have succeeded if it had been properly funded. The company was started with limited seed money, he said, with intentions of later making a public stock offering to raise $7 million of additional funding. However, the stock offering was repeatedly delayed and FBN eventually lost its underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. , said Miller, who is now publisher of the Alton Telegraph telegraph, term originally applied to any device or system for distant communication by means of visible or audible signals, now commonly restricted to electrically operated devices. Attempts at long-distance communication date back thousands of years (see signaling). in Alton, Ill. If the public offering had come together and achieved its objective, FBN probably would have succeeded, Miller said, because business radio was a hot commodity at the time. Chapter 11 court documents filed by FBN and its subsidiaries claimed a total of $3.1 million in receivables were owed the companies. But the majority of that amount was in inter-company receivables -- owed by one bankrupt BANKRUPT. A person who has done, or suffered some act to be done, which is by law declared an act of bankruptcy; in such case he may be declared a bankrupt. 2. It is proper to notice that there is much difference between a bankrupt and an insolvent. company to another bankrupt company. In short, they were uncollectible. What's more, most if not all of the remaining receivables were at least five months delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. and also appeared to be uncollectible. The company's assets included $55,000 in lease deposits. Some $15,000 of that total were deposits on office space where rent payments were delinquent. Taylor, who is also the deposed founder of cable television's Financial News Network, indicated that he presumed those rent deposit monies were used to cover delinquent payments and cannot be recovered. The other $40,000 are deposits on equipment leases and their recovery was being negotiated by Thrush. Taylor had proposed cutting overhead expenses by consolidating the companies' operations at a single location, FBN's home office at 2049 Century Park East in Century City. FBN did have two other office locations. FBN also ceased broadcasting its 24-hour-a-day radio format on March 1. Instead, Taylor was planning on turning the company into a supplier of syndicated financial news. The consolidated FBN operation would have entailed overhead expenses of $35,000 to $40,000 a month, Taylor estimated. "The bottom line here is there's no money. There's no money for a trustee," said Wendy Sadovnick, the bankruptcy court analyst who conducted the hearing. FBN's financial problems surfaced after the $7 million stock offering fell through about the middle of last year. The resulting lack of capital caused the radio network to fall behind on wages, rents and taxes. FBN suffered a defection of several key managers toward the end of last year. Miller, who was vice president of publishing, defected, as did Joe Dorton, FBN president, and John Darrin, vice president of radio distribution. The three left the company reportedly due to nonpayment of salaries. FBN was broadcast locally out of Rosarito, Mexico on radio station XEKAM 950. The signal was weak in sections of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , which was one of the reasons the station encountered difficulty selling advertising. The radio network bounced its signal via satellite to 11 radio stations across the country who picked up all or part of the 24-hour programming. Taylor started broadcasting FBN in 1989. |
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