Core Entertainment Inc.’s lenders aren’t happy with the outcome of the “American Idol” producer’s bankruptcy restructuring, the Wall Street Journal reported today. In a lawsuit filed on Monday in U.S. Superior Court in Los Angeles, a trustee for Core’s pre-bankruptcy lenders accused the production company’s private-equity backer Apollo Global Management as well as 21st Century Fox Inc., of scheming to strip the company of its cash and most valuable assets while leaving them holding the bag. A spokesman for the trustee said yesterday that the trust was formed to pursue claims to the benefit of all pre-bankruptcy general unsecured creditors. Core Media Group, the reorganized entity that emerged from bankruptcy and is still in business, isn’t a plaintiff in the lawsuit. Among Core’s unsecured creditors are pre-bankruptcy lenders including Crestview Media Investors LP as well as Tennenbaum Capital Partners LLC, Bayside Capital Inc, Hudson Bay Capital Management LP, Credit Suisse Asset Management LLC, CIT Bank NA and Oaktree Value Opportunities Fund Holdings LP.
