Broadcaster Slips Into Ch. 11 After $47M Jury Verdict

Law360, Chicago (June 25, 2013, 2:56 PM EDT) -- Luken Communications LLC retreated into bankruptcy Sunday in Tennessee after a federal jury slapped the broadcaster with $47.4 million in damages over its 2008 acquisition of the Retro Television Network.

On Friday, an Arkansas federal jury found that the Retro TV deal severely undervalued the network, whose former owner — Equity Media Holdings Corp. — slipped into bankruptcy just six months after the June 2008 transaction.

The jury agreed with Equity Media’s Chapter 7 trustee that the $18.5 million deal — orchestrated by Equity Media’s then-CEO,...
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