CK Media Settlement Checks Arriving

The checks have started to go out for the CK Media settlement with creditors that was arranged earlier this month by bankruptcy/turnaround consultants CRG Partners.

Creditors had until the end of business on March 11th to submit paperwork agreeing to the settlement, with the threat of bankruptcy (with unsecured creditors probably remaining uncompensated) hanging over the company if the settlement was not agreed to. According to Scrapbook Update's sources, creditors were offered 40% or 25% of the amount owed to them, depending on the size of their debt. Creditors owed larger amounts were offered the smaller settlement amount.

Evidently, a large enough portion of the company's creditors agreed to the settlement for it to proceed, since the checks are now arriving. Many designers owed money are reporting their checks arriving. (And in case you missed it in the comments from the previous entry, Molly Newman indicated she has finally been paid the part of her overdue invoices that were over 60 days old but that weren't settlement-eligible.)

Hopefully this is a good sign that CK Media is making progress in restructuring its finances in a way that will let it move forward better than it has been operating.