From the new kid on the West Hollywood media block comes news of trouble at one of the oldest. According to WEHOville.com, bi-weekly mag publisher Frontiers LA filed for Chapter 11 bankruptcy protection on March 6 and received approval for a 90-day transitional operating budget March 11. Still under discussion is how the company will be restructured and which creditors are to be paid first.
There are a couple of juicy personnel details. On the day before the bankruptcy filing, Frontiers co-editor Aaron Drake suddenly quit. That could very possibly have had something to do with requests made by owner-publisher David Stern:
Two proposals have met objections from Peter Anderson, the court-appointed bankruptcy trustee, whose role is to assure that creditors are treated equitably. Anderson objected to a proposal to pay Stern $150,000 a year, noting that in the 12 months preceding the bankruptcy filing Stern was paid only $82,296.
Anderson also objected to Stern’s proposal that he be given a car allowance of $978 a month to pay for his Fiat 500 HB 2012 and a business expense allowance of $785 a month. Anderson argues that both payments exceed the amounts given to Stern in the previous 12 months.
There’s much more detail in the thorough WEHOville.com report, including the status of payments to freelance writers. Full article here.