Inner City Media Chapter 11 case dismissed by bankruptcy court

By Caroline Salls

Pittsburgh, Dec. 23 – Inner City Media Corp.’s Chapter 11 bankruptcy case was dismissed Tuesday by the U.S. Bankruptcy Court for the Southern District of New York, according to a court filing.

“At this point, the debtors have no operations, employees or property,” the company said in the dismissal motion filed in July.

“The debtors cannot effectuate a Chapter 11 plan of reorganization or liquidation, have no assets to make distributions to unsecured creditors and, if these cases were converted to cases under Chapter 7, they would be instantly and permanently administratively insolvent.”

Inner City said the estates are actually already administratively insolvent, and the debtors had not paid estates professional fees because the escrow account set up for that purpose had been depleted.

According to the motion, the main activity that has occurred in the Inner City cases in the past two years has been an artwork-related adversary proceeding, in which the debtors are only involved as nominal defendants. The company said the pending adversary proceeding is not a bar to dismissal of the Chapter 11 cases.

“The debtors’ professionals should not be required to finance these Chapter 11 cases, which have no purpose other than to serve as a vessel for the artwork adversary proceeding,” the motion said.

Inner City Media is a New York-based radio company. An involuntary bankruptcy case was filed against the company on Aug. 19, 2011. The Chapter 11 case number is 11-13697.

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