Major Cable Television Distributor Seeks Chapter 11 Bankruptcy Relief
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Major Cable Television Distributor Seeks Chapter 11 Bankruptcy Relief

July 8, 2013

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Cable Ready Corp., the Connecticut-based distributor of popular cable-television like "Inside the Actors Studio" and "Live from Lincoln Center" has filed for bankruptcy help, according to a report from The Wall Street Journal.

Sources say the company plans to make its first appearance this week in U.S. Bankruptcy Court in Bridgeport, Connecticut, and it is expected to ask the judge to allow it to secure an emergency loan so it can continue operating.

If the financing fails to go through, Cable Ready believes it will "suffer immediate and irreparable harm as it would be unable to pay for operating and payroll expenses at a level that is essential to sustaining its operations, thereby forcing the debtor to effectively close down," said the company in its petition.

In its bankruptcy filing, Cable Ready told the bankruptcy court that it has $3.17 million in assets, but owes roughly $4.46 million in debt, which includes nearly $1.5 million owed to its primary lender, Norwalk Bank and Trust.

In recent years, the cable distributor has faced a broad range of challenges. First, the shaky global economy forced Cable Ready to cut costs as consumers reduced their spending on cable packages.

More fundamentally, though, the television production industry has suffered from a wave of financial distress as consumers turn to alternative outlets, such as Internet-based programs and Netflix, for their entertainment needs.

And as the demand for traditional cable distributors shrinks, larger competitors have lowered their prices to a point where Cable Ready simply cannot compete, according to sources.

Nevertheless, the company, which was founded in 1992, believes that using the bankruptcy process will allow it to cut its costs and find new life as a "strong, viable business," according to its bankruptcy petition.

The new business will likely retain key features of Cable Ready’s old ventures, which include the sale of television programs to cable and satellite networks across the globe.

In addition to its distribution operations, the company also develops its own programs, including "Inside the Actors Studio," which Cable Ready sold to Bravo in 1994. That popular program, helmed by James Lipton, has now created more than 250 episodes.


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