The U.S. Bankruptcy Court approved Multimedia Platforms’ compromise of controversy with White Winston Select Asset Funds.
As previously reported, “Prior to the Petition Date, and in order to finance operations, MPI, Columbia Funmap and New Frontiers entered into a Master Credit Facility Agreement (the ‘Credit Facility’) with White Winston Select Asset Funds. In accordance with Credit Facility, White Winston agreed to lend up to the principal amount of $1,750,000.…White Winston Select Asset Funds asserts that it holds a valid, perfected and enforceable first priority, senior secured lien and security interest on substantially all of the assets of the Debtors. White Winston claims that as of the Petition Date the amount the Debtors owed to White Winston was in the amount of $1,341,701.57.”
In addition, “The Debtors claim that White Winston’s claim as of the Petition Date is $386,484.59 or $932,383.10 less than averred by White Winston. Interest, costs and fees, including reasonable attorney’s fees, continue to accrue to the extent permitted by applicable law….White Winston and the Debtors shall jointly formulate, propose and seek confirmation of a Chapter 11 Joint Plan of Reorganization, which shall contain the following provisions: White Winston shall contribute the sum of $100,000 (the ‘New Value Cash Payment’), and its claims against the Debtors’ officers and directors (‘White Winston D&O Claims’) to the Debtors’ estates, to be used as set forth in this Term Sheet. For purposes of the Plan and the allocation of ‘New Equity’, White Winston shall be deemed to hold an allowed secured claim in the amount of $2,098,150.86, as adjusted by accrual of interest, fees, costs and other expenses under the applicable loan documents as of the Effective Date of the Joint Plan, secured by all prepetition assets of the Debtors (the ‘White Winston Claim’).”
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