Feds Accuse Inner City Of Using Sale To Dodge $31M Tax Bill

Law360, New York (February 16, 2012, 12:22 PM EST) -- Federal prosecutors took the unusual step Wednesday of ripping bankrupt Inner City Media Inc.'s plan to sell itself for $180 million to creditors including billionaire Ron Burkle, calling the proceeding a bad-faith attempt to dodge $31 million in taxes.

Lenders including Burkle's Yucaipa Corporate Initiatives II LP, who are owed $250 million by the insolvent radio broadcaster and have a $180 million credit bid on the table, are trying use the bankruptcy asset sale process to avoid taking a major tax hit, U.S. Attorney for the...
To view the full article, register now.