http://www.hollywoodreporter.com/new...chapter-888409
Core was founded a decade ago and was recently brought into a joint venture owned by 21st Century Fox and Apollo Global Management. But as Idol has now aired its last show, it appears as though Core envisions some restructuring. In the bankruptcy filing, the company says it owes $398 million to third parties, including from two matured loans from Tennenbaum Capital Partners, Crestview Media Investors, Bayside Capital and Hudson Bay Capital Management. The company reports about $73 million in assets but less than $10 million in cash on hand.
According to a declaration made in court in conjunction with the Chapter 11, "Despite its long-running success, however, the Company has recently experienced deterioration in its financial performance, primarily attributable to the decline in ratings for American Idol and the corresponding decline in revenues from IDOLS-related broadcast fees, international tape sales for rebroadcasts, touring fees, sponsorships and IDOLS-related merchandise sales."
The slipping Idol fortunes have backed the company into a tough place. In 2014, earnings from the show decreased by $15 million, according to court papers, and overall, the company says it suffered a total revenue decrease of $35.6 million for the first half of 2015. In the past two years, Core's 19 has been trying to make up some of this money in a court proceeding against Sony Music over money generated by sales and distributions of Idol artists.
"Additional negative ripple effects included, among other things: a decline in re-broadcast fees due to reduced broadcast hours; the loss of both Coca-Cola and AT&T as main sponsors of American Idol; and the closure of the American Idol Experience theme park attraction at Walt Disney World," states the court papers. "This decline culminated on May 11, 2015 in FOX announcing that it would no longer air the American Idol series in the United States after its fifteenth season."
SCREAMING
