Posted on 02/07/2009 10:54:20 AM PST by lainie
The investment fund that owns the Washington Blade, the Southern Voice, Genre magazine, and other gay publications has been forced into receivership by the federal Small Business Administration (SBA), which will sell the fund's assets and distribute the proceeds to investors.
"As a consequence of defendant's continuing violation... SBA is entitled to the injunctive relief... including the appointment of SBA as receiver of [the Avalon Equity Fund]," the SBA wrote in an August 2008 court filing, which was only recently found by Gay City News.
Avalon, which owns a stake in the company that publishes the New York Blade and HX, was licensed by the SBA as a small business investment company (SBIC) in 2000. Through 2007, it borrowed just over $38 million from the federal agency to invest in gay media properties and a range of other ventures.
As part of its contract with the SBA, Avalon was required to have private money or assets in the fund from sources, such as individual investors, that had a value equal to half the amount it borrowed from the SBA or just over $19 million.
In 2007, the SBA wrote Avalon that it had a "condition of capital impairment" because the value of its private assets had fallen below the required level.
(Excerpt) Read more at gaycitynews.com ...
Avalon Equity Fund, the investment group that owns the Washington Blade, the Southern Voice, Genre magazine, Express Gay News, Houston Voice, the New York Blade, The 411 Magazine and has a non-majority stake in HX Media has been placed into federal receivership by the Small Business Association, which will liquidate the companies and distribute the proceeds to investors.
The Avalon Fund has been in receivership since last August, a fact that its media properties have been either unaware of, or unwilling to admit, which is a strange position for a media organization to be in, to say the least.
Gay media can’t get it up, film at 11.
I’m not sure if gay media outlets constitute “dinosaur” media or not, and I can’t tell you if their having hid the receivership is okay (no one’s business), or deceptive. I also don’t know if this means they will be ceasing publication, and whether John Q. Public is entitled to any more information, being that it’s funded through the SBA. It’s a headscratcher all the way around.
/johnny
So the Small Business Administration has been assisting the Washington Blade and the NY Blade to survive? Good to know our taxpayer dollars have been so wisely used.
Looks like their business plan sucked too.
WTF - the SBA lent $38 million to distribute most likely pornography? $38 million is a small business loan? Insanity.
Sooooo, they’ve been ‘liquidated’ eh?
Ding dong the witch is dead!
“Gay Media In Receivership”
“a strange position”
“ defendant’s continuing violation”
Yuck!
Man, it sure is a shame to see all these liberal media organs going out of biz. I’m gonna start cryin’.
Out of curiosity, is any print publication doing well these days? I’m curious how National Review and the right-leaning mags are being affected by the economic downturn.
Avalon Media Investments ("AMI") is currently seeking new investment opportunities.
AMI is backed by a large institutional investor and will invest $10 million to $100 million of equity per transaction. In addition, the AMI Partners, through an extensive network of industry contacts, will seek out co-investors for equity investments up to $250 million. Avalon has formed various partnerships with other private equity firms in the past to invest in deals together and have found this to be successful because it allows the sharing of expertise and resources among “smaller” firms.
"backed by a large institutional investor" AKA the American taxpayer
Don’t get happy yet. They still had the power to promote Hussein, cover for him, and stifle the (admittedly weak as well water) Republican message in the last election. As for conservatives, the best we can do now is huddle in a corner and talk amongst ourselves. We have no national “objective” news microphone. The “dead” media portrays us as suits them and their socialist masters, and that’s negatively and dishonestly.
Mind you... that’s the BUSH administration.
http://dockets.justia.com/docket/court-gudce/case_no-1:2008mc00036/case_id-7536/
United States of America v. Avalon Equity Fund, L.P.
September 5, 2008
Guam District Court
County: Guam
Presiding Judge: Chief Judge Frances M. Tydingco-Gatewood
This must be the lawsuit seeking the receivership. Why Guam?
Actually, they aren’t even bothering with negative and dishonest anymore, regarding conservatives. They simply, in true Orwellian fashion, are behaving as if we don’t exist anymore, or at best are some fringe political group. Ridicule and dismissal work even better for them. It’s a non-stop, 24-hour orgy of all Hussein, all the time.
Sorry, I can’t gloat; their task is completed; they have conquered the world. The Supreme Court has now recognized that the purpose of the US Government is to be a sex cult. The Obama administration is banning religion from universities. And “we’re all socialists now.”
That just sucks.
Just poking around looking for info...
The following is an excerpt from a 10-K SEC Filing, filed by MUZAK HOLDINGS FINANCE CORP on 3/4/2003.
David W. Unger has served as a Director since March 1999 and as Managing Partner of Avalon Equity Partners since its inception in December 1999. Mr. Unger previously served as Vice President of Muzak from March 1999 to August 1999 and was Executive Vice President of Audio Communications Network from May 1997 to March 1999. Prior to May 1997, he was chairman of SunCom Communications, LLC, a franchise of Muzak. Since 1995, Mr. Unger has invested in, operated and sold communications businesses. Prior to 1995, Mr. Unger worked for Communications Equity Associates, TKR Cable Co. and Teleprompter Corp.
I do NOT want to see the inventory of seized assets.
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