Alpha Media disclosure statement hearing set for March 11

The bankruptcy court overseeing the Chapter 11 proceedings of Alpha Media USA LLC scheduled a hearing on the adequacy of the company's proposed disclosure statement for March 11, according to bankruptcy court filings. The voting deadline would be set for April 8.

According to the filings, the company is seeking to hold a reorganization plan confirmation hearing April 15.

As reported, the company had agreed upon a proposed prepackaged reorganization plan with creditors, launching a plan solicitation Jan. 8. On the voting deadline of Jan. 15, however, the prior holders of the company's first-lien debt notified that company that they had sold their positions to Fortress.

"Fortress soon made it clear to the debtors' advisors and advisors to [Intermediate Capital Group, the holder of the company's second-lien debt] that it was not willing to immediately agree to support the prepackaged Chapter 11 plan," the company explained at the time it filed for Chapter 11.

With the prepackaged proposal no longer viable, the company developed an alternative plan, with both Fortress and ICG submitting proposals. The Fortress proposal was predicated on, among other things, a bankruptcy sale process without a stalking horse bidder. The company determined, however, that the Fortress proposal was not viable and instead pursued an equitization proposal from ICG.

The company filed a proposed reorganization plan and disclosure statement along with its petition reflecting the ICG proposal. It is unclear whether Fortress will actively oppose the proposed plan.