Fuse Media Inc., the American television broadcasting company, filed for bankruptcy late Monday after losing millions of subscribers.
The Glendale, California-based company filed for Chapter 11 in the bankruptcy court of Delaware, listing $201.2 million in assets against $242 million in debt, according to court filings. The company’s 10.375 percent secured notes due in July were last quoted at around 24 cents on the dollar as of Feb. 13, according to Trace bond trading data.
Fuse Media is a digital cable and satellite television company that provides video-on-demand channels including Fuse TV and Fuse Music, according to its website. The company was in talks with bondholders at the beginning of the year when it said it was “evaluating a range of opportunities to strengthen our long-term financial position.” S&P Global Ratings said that Fuse couldn’t repay the July notes and would pursue a distressed exchange or face insolvency, according to a Jan. 15 report. At that point, Fuse had already lost more than 15 million subscribers—20 percent of its total base—after Comcast Corp. and Verizon Communications Inc. dropped Fuse channels, S&P said.
Law firm Pachulski Stang Ziehl & Jones LLP is representing Fuse as debtors counsel, per the docket. It was assigned to U.S. Bankruptcy Judge Kevin Gross. The case is Fuse Media Inc., 19-10870, U.S. Bankruptcy Court, District of Delaware.