CPM Bankruptcy Update: Some Banking Details

I recently checked again into Central Park Media’s current bankruptcy case and found some new documents from the past month: a Stipulation for Payment of 11 U.S.C. Section 506(c) Expenses and a signed order by presiding judge Shelley C. Chapman approving the sale of the “Anime Channel” trademark, the text of which was basically the same as the Order Pursuant originally submitted in April. Chapman signed both orders on May 3rd.

The Stipulation contains details about CPM’s relationship as a debtor to Bank of America. BofA had lent CPM “approximately $888,651.40″ and holds a lien against them because of that – as of the Stipulation’s filing, CPM owed $924,722.56 inclusive of all accrued interest and fees. The net proceeds from the Anime Channel trademark sale will be distributed to BofA because it was part of CPM’s Estate Assets (basically all their accounts, intangibles and inventory).

BofA then agreed to be “bound by the terms of 11 U.S.C. § 506(c) to pay the reasonable, necessary costs and expenses…of preserving, disposing of, or attempting to dispose of the Trademark subject to BofA’s lien” with the costs not to exceed 40% of the gross proceeds from the sale. If costs did surpass 40% of gross proceeds from the sale, BofA and the Trustee would “attempt to negotiate a reasonable increase to such amount” of the costs. Both parties agreed that the costs will only be payable from the gross proceeds from the trademark’s sale and no costs will be owed if the sale is not approved by the Court.

I hope you don’t mind me not reporting this last week when I first downloaded the documents because frankly, this is not a fast-moving case, the company’s already folded and the subject matter is very dry. I’m mainly doing it because I haven’t seen anyone else digging around for this information.