First, let’s start off with facts: Both PW Daily and Publishers Lunch have seen papers filed with the bankruptcy court handling the AMS Chapter 11 filing fallout, and in it The Unsecured AMS Creditors’ Committee has filed a motion asking the court not to approve the company’s debtor-in-possession financing, which they say is unnecessary, and to move instead towards liquidation of the company as a result of its “hemorrhaging” money and it “no longer being a viable entity.” As for the proposal from Perseus regarding the contracts of PGW, attorney Bruce Nathan of Lowenstein Sandler, which represents the committee, says that, “The creditors’ committee wants to see PGW sold as a going concern and, in that regard, is working with Perseus to resolve certain concerns with respect to the proposed Perseus transaction agreements. The committee hopes that its issues will be amicably resolved.”
Now, the rumor, and it’s a big one: Radio Free PGW reports that an offer to purchase AMS’s holdings – without PGW – is “imminent” from the Charles Levy Company, which is responsible for Levy Home Entertainment. The anonymous blog notes particular coincidences in the potential announcement, especially “that four or so of the top AMS execs and upper tier employees left AMS a few months ago to work for a new Levy office in San Diego…that those AMS people were all chums–and we do mean chums in the chummiest kind of way….that there wasn’t a single thing about the AMS bankruptcy that was not pre-planned and pre-meditated.”