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Core files for bankruptcy

American Idol

American Idol is produced by Core

American Idol producer Core Media Group has filed for bankruptcy protection in New York City.

US-based Core said it owes a total of about US$420m to third parties, including Sony Music Entertainment and CBS. This includes debts to the firm’s unsecured creditor Fuller, which is owed US$3.37m, according to the Chapter 11 filing.

Core was part of the joint venture that 21st Century Fox and Apollo Global Management created in 2014 with the merger of Apollo’s Endemol and Core with Fox’s Shine Group.

But the firm remained largely separate from the Endemol Shine mega indie as it looked to refinance its debt.

Core is also the parent of 19 Entertainment and Sharp Entertainment, but Sharp and operating company B-17 Entertainment are not part of the filing.

Core said its company management will remain intact under CEO Peter Hurwitz.

“Core Media Group remains firmly committed to our mission as a global content and management company producing award-winning programming,” said the company, which employs 22 full-time staff.

“In June 2015, with the changing landscape and one of our flagship shows in transition, we proactively engaged in discussions with our lenders regarding balance sheet optimisation alternatives and a strategic restructuring. The actions we are announcing today will help best position the company for the future, allowing for more flexibility and a platform for growth.”

The bankruptcy filing is supported by Core’s key lenders, Crestview Partners and Tennenbaum Capital, both of which will assume ownership of the company from Fox and Apollo following the completion of the Chapter 11 process.

public_enemyCore’s flagship series American Idol finished its 15th and final season on US network Fox earlier this month. The company is also behind fellow Fox show So You Think You Can Dance.

Last September, Core head of US television Jennifer O’Connell exited as part of a management reshuffle as the company attempted to refinance its estimated US$300m debt.

Her departure followed those of CEO Mark Graboff in 2014 and Jenny Ramirez, VP of development and production, who joined Irwin Entertainment in early 2015.

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