The state-funded, off-the-air Back9Network has filed for bankruptcy, with the hope of emerging with an existing group of shareholders who will restructure the company.
In a statement, the downtown Hartford golf network said those existing investors would push more capital -- another $2 million -- into the company as part of the bankruptcy effort. It could emerge as an online-focused network for golf enthusiasts.
“The proposed restructuring will keep the business in Connecticut as a viable commercial enterprise while addressing the Company's outstanding loan obligations to the State of Connecticut as well as the Company's obligations to other creditors and stakeholders,” the company said in a statement.
Back9 raised $5 million from the state as well as many millions more from private investors. But, earlier this year, it all but went out of business -- laying off the majority of its staff after it ran out of money. The effort had many high-profile boosters, including Hartford city Treasurer Adam Cloud.
Since then, though, it has been tied up in court. At least two investors are suing, as is a video equipment lender. Contractors and subcontractors on Back9’s studio project say they’ve not been paid.
In its bankruptcy filing, Back9 said this:
Despite intense efforts to generate additional advertising revenue, raise long term capital, and secure additional television distribution, Back9 ultimately was forced to discontinue its television operations on February 23,2015. Due to the increasing consolidation within the U.S. pay television distribution industry and the deceleration of U.S. pay television household growth, Back9 was not able to attract the long-term financing needed to grow and operate a 2417 U.S. cable network.
But the network says it has a plan to move forward.
“We have agreement in principle on a plan that we believe is in the best interests of all stakeholders” said Charles Cox, CEO of the company. “The restructuring will result in a slimmed-down, online-focused golf entertainment network that can be successful and grow on a go-forward basis.”
Back9 says the state has been advised of the bankruptcy. It also says the process should be complete by March. The five investors in the company who are continuing their investment are Brian Furbish, Karl Krapek, Denis Nayden, Ted Rossi, and Paul Raether, according to the bankruptcy filing.
