Luken Communications files bankruptcy after Arkansas verdict - WRCBtv.com | Chattanooga News, Weather & Sports

Working Together For You

Luken Communications files bankruptcy after Arkansas jury verdict against company

Posted: Updated:
Henry Luken. Photo by Tim Barber/Times Free Press. Henry Luken. Photo by Tim Barber/Times Free Press.
CHATTANOOGA, TN (Times Free Press) -

Luken Communications, the Chattanooga-based parent company of Retro TV, the Nashville Network and a half dozen other television networks, has filed for bankruptcy after an Arkansas jury awarded a $47.4 million verdict against the company for a "fraudulent transfer" of the ownership of the RTN network six years ago.

A hearing is set in U.S. Bankruptcy Court today at 2:30 p.m. to hear motions in the Chapter 11 filing in which the Luken Communications seeks to reorganize its finances under court protection. Luken's bankruptcy filing on Sunday came just two days after a federal jury in Little Rock, Ark., awarded $47.4 million to a bankruptcy trustee representing creditors of the former bankrupt Equity Media Holdings Corp.

In the lawsuit against Luken Communications, creditors for Equity Broadcasting said the company slid into bankruptcy in December 2010, just two and a half years after the transfer of RTN to Luken Communications. The lawsuit claims Luken's purchase price of $18.5 million in 2008 was only 16 percent of the $115.8 million the company was valued at just seven months earlier.

The jury on Friday agreed with plaintiffs that the transfer of RTN from Equity Media to Luken Communications was made "with actual intent to hinder, delay, or defraud" Equity Media. The complaint also alleged that the transfer might have "resulted in Equity Media becoming insolvent."

Read more from our news partners at the Chattanooga Times Free Press.

  • NewsMore>>

  • How to detect if it's too dry in your home

    How to detect if it's too dry in your home

    Sunday, January 21 2018 7:33 AM EST2018-01-21 12:33:07 GMT

    There are 5 1/2 weeks left of the Meteorological winter and 8 1/2 weeks until the spring equinox. As air in you're home may still be dry from the cold weather, here is a quick way to detect if it's too dry. 

    More

    There are 5 1/2 weeks left of the Meteorological winter and 8 1/2 weeks until the spring equinox. As air in you're home may still be dry from the cold weather, here is a quick way to detect if it's too dry. 

    More
  • Signs of government shutdown spotty but symbolic

    Signs of government shutdown spotty but symbolic

    Sunday, January 21 2018 12:50 AM EST2018-01-21 05:50:38 GMT
    Trump administration pledge to minimize the impact of a government shutdown faces an early test as a number of iconic American landmarks announced they would be closed.More
    Trump administration pledge to minimize the impact of a government shutdown faces an early test as a number of iconic American landmarks announced they would be closed.More
  • The Latest: Senate GOP plans a vote aimed at ending shutdown

    The Latest: Senate GOP plans a vote aimed at ending shutdown

    Sunday, January 21 2018 12:50 AM EST2018-01-21 05:50:24 GMT
    Republicans and Democrats appear to be no closer to ending a government shutdown, and the White House is indicating it's waiting for Democrats to drop their demand that a funding bill include protections for...More
    Republicans and Democrats appear to be no closer to ending a government shutdown, and the White House is indicating it's waiting for Democrats to drop their demand that a funding bill include protections for "Dreamers.".More
Powered by Frankly