A Less Rosy View Of Back9's Reorganization Attempt
/Katy Stecha at the Wall Street Journal has gone through the court papers and paints a less flattering image of Back9's possible reinvention as an online website and app.
Most eye-opening is who and how much the failed network owed money to.
The five existing investors behind the $2 million offer are retired United Technologies Corp UTX +1.16%. executive Karl Krapek, private equity managing partner Denis Nayden, wood exporter Ted Rossi, KKR KKR -1.77% investment firm portfolio manager Paul Raether and Brian Furbish.
Under the purchase plan, the investors will continue to repay roughly $4.75 million in low-interest loans extended through Connecticut’s media tax credit program. The state’s decision to invest in the golf channel gave critics of Democratic Gov. Dan Malloy something to grumble about. As the Connecticut Post pointed out, Mr. Malloy’s chief of staff is married to a Back9Network employee. The network also employed former Democratic state Sen. Sanford Cloud Jr., his close ally.
The channel’s collapse stung an impressive list of more than 200 investors, including tech entrepreneurs, Wall Street executives, doctors and golf industry players. People who own small slices of the channel include New Jersey Devils part owner David Blitzer and UConn women’s basketball coach Geno Auriemma.
Here is the full list of those owed money by the failed network.