TVT OD AS GOTTLIEB LOSES CONTROL
According to a report in yesterday’s N.Y. Post, hedge fund investor Daniel Zwim is in line to be the leading bidder in the June 12 auction of TVT Records, which was recently forced into Chapter 11 after it lost a $9.1 million court verdict over a disputed distribution deal.
Zwim's D.B. Zwim & Co. has $9.7 million in secured loans to the company, and is in position to become TVT's majority owner. The hedge fund firm’s investments are reportedly worth $4.2 billion.
There are reportedly 30 investors weighing whether to make a bid on the label. If the bidding is desultory, unsecured creditors could end up receiving only pennies on the dollar.
Zwim, who started the fund in 2001, recently started investing in media properties because of the potential of large returns.
Meanwhile, Pitbull, one of the label's best-known artists, is urging people not to buy his TVT album, The Boatlift, released last year.
"I just want to make sure my artists are taken care of and I do right by my creditors," said Gottlieb. "By the way, can I borrow a couple of bucks for the subway?"
According to a Schedule F filing, which was recently made public on www.scribd.com., here’s a selective number of TVT’s creditors and how much they’re owed.
American Express: $57k
BET: $115,994.29
Big Champagne. $30k
Billboard: $582.88
BMG Songs: $70,336.23
Castle Rock Entertainment: $379,341.72
Chad Kroeger: $945.46
Cinram: $612,001.67
EMI Music Publishing: $178,654.03
Greenberg Traurig: $61,703
HITS magazine: $10,000
Kaye Scholer, LLC: $4,736,810.22
Kings of Crunk Studio: $123,405.58
Labaton, Sucharow and Rudoff, LLC: $412,685.66
LeMarquis Jefferson: $171k
Lil Jon Productions: $30k
Little Jonathan Properties: $76,260
Musicland: $186,273.66
Nielsen BDS: $20,710.48
Nielsen Soundscan: $26,883.50
Roberts & Ritholz, LLP: $31,642.76
SKA Films Diamonds, Ltd. (Columbia Pictures): $358,370.15
Slip N Slide Records: $4,579,200
Sullivan, Johnson LLP: $55,448,96
Harry Fox Agency: $7,328.85
Universal Music Group: $124,409
Universal Music Publishing: $131,568.31
Usher: $100,000
Warner Chappell Music: $121,846.39
Warner Strategic Marketing: $219,889.67
