Report: ProElite To Go All Out To Retain Assets
November 7, 2008
As a follow-up to our report that ProElite may file bankruptcy to avoid an asset sale, MediaPost.com is reporting the following:
With Showtime primed to sell its assets, a mixed martial arts promoter isn’t going down without a fight. ProElite, which has aired MMA matches on the pay cable network, said Thursday that it plans to block the public auction.
Looking to resuscitate its business, the company said it would pursue all available options to retain its assets, which include the contract of Kimbo Slice (real name: Kevin Ferguson). Possible actions include trying to raise additional capital, filing for bankruptcy, negotiating a settlement with Showtime, or filing a lawsuit to prevent the sale from going forward, according to an SEC filing.
Here is the said filing:
The Company received a Notice of Public Sale of Collateral dated October 31, 2008 from Showtime Networks (“Showtime”) pursuant to its security interest in the Company’s assets. In the notice, Showtime stated its intention to sell the Company’s assets to the highest qualified bidder on November 17, 2008 at 10:30
a.m. Pacific Time at the office of Hughes Hubbard & Reed LLP, 350 South Grand Avenue, Los Angeles, CA 90071. The notice is attached hereto as Exhibit 2.9.
The Company plans to take all appropriate measures to prevent the sale from occurring. Such measures may include raising additional financing, filing a lawsuit enjoining the sale, filing a bankruptcy petition or negotiating a settlement with Showtime. There can be no assurances that the Company will be successful in any of these actions.
Rumors earlier today indicated that ProElite Was taking whatever steps needed to avoid the disposal of its assets by Showtime. MMAPayout.com was the first to report that ProElite was taking such measures.
