Trustees acting on behalf of LC Media – publisher and owner of several automotive titles, including Cycle Canada and Moto Journal – have issued a notice of proposal to creditors in an attempt to pay off a 4 1/2 million dollar debt and avoid bankruptcy.
Creditors will vote today at 2:30 pm EST on whether to accept or reject the offer. Acceptance – which requires approval by 2/3 of creditors to which the financial amount is owed as well as a simple majority vote in favour – will mean that payments are made out at the agreed rates and the debt is settled, allowing LC Media to continue operating. Rejection will result in bankruptcy.
LC Media has managed to get the Fédération des travailleurs et travailleuses du Québec (a
Quebec government organization that invests in small businesses based in
Quebec) to invest in the firm and thereby ensure that, if the vote is a
yes, there will be money to pay the creditors.
“The announcement of the company’s financial difficulty came as a
surprise and a disappointment to all of us here at LC Media. Right now,
all indications are that we’ll likely pull through this difficult
situation,” said Cycle Canada’s editor, Costa Mouzouris.
"The next issues of Cycle Canada and Moto Journal are on schedule, and we’re moving forth as close to usual as possible under the circumstances. Our tires might be flat and we might be down a cylinder, but the engine’s still running over here. I would like to thank all those who have shown support in these trying times.”
What would happen to Cycle Canada and Moto Journal if the vote goes against the company remains to be seen. However, it would seem unlikely that these profitable titles would completely disappear as they would be some of the more prized assets among the ashes of LC Media.
Either way, the magazines will be facing some tough times ahead. We’ll update you on the outcome as soon as we have the information.