The lenders who alleged Bobby Blair's Multimedia Platforms (MMPW) was a house of frauds have filed a motion in federal court to appoint a Chapter 11 trustee to collect, gather and freeze the use of any funds which were the subject assets of the defaulted loan.
Multimedia Platforms owns several publications including Florida Agenda, Next magazine in South Florida and New York, FunMaps and Frontiers in LA.
White Winston Select Asset Funds has shifted most of the arguments they made against MMPW in Boston Superior Court to the new case in the U.S. Bankruptcy Court for the Southern District.
The motion explains, “The Debtors and their management are dishonest and have defrauded White Winston, have breached their fiduciary duties to the Debtors and otherwise have continued to act in ways that are destructive of the Debtors’ value and White Winston’s collateral. The Debtors, along with Columbia Funmaps, knowingly and intentionally diverted cash receivables they pledged as collateral to White Winston."
The motion alleges MMPW crested and concealed a secret account to divert and improperly hold on to funds they had a legal obligation to turn over immediately. After the scammed lenders discovered the purported con, they demanded that diverted cash collections be turned over at once. At that point, all of MMPW's officers quit and abandoned the business.
The motion continues, “A chapter 11 trustee should be appointed at the earliest available opportunity for all of the Debtors so that a prompt sale process of the Debtors’ business can occur to limit the erosion of value available for creditors. Finally, the Court should prohibit the Debtors from using White Winston’s cash collateral pursuant to 11 U.S.C. section 363(e)….The Debtors have provided White Winston with absolutely no information whatsoever about their business plans and intentions regarding usage of cash collateral.”
In order to remain in Chapter 11, and reorganize its assets or remain open, MMPW must submit a viable plan to the court.
MMPW remains optimistic publishing a press release declaring “The voluntary [Chapter 11] petitions were filed in response to a Temporary Restraining Order entered by a state court in Massachusetts filed by the Company’s principal lender.”
Multimedia Platforms entered into a master credit facility agreement for a principal amount of $1,750,000 provided by White Winston Select Asset Funds, LLC (White Winston) on July 29.
On Sept. 9, White Winston declared a default related to (a) a failure to pay interest and (b) breaches of unspecified representations and warranties. Multimedia Platforms explains, “As a result of the alleged defaults, White Winston accelerated the Note and demanded assemblage of all collateral.”
In Court-filed documents, Multimedia Platforms notes, “Essentially, White Winston has, in a period of 55 days, shutdown the Debtor’s entire business….The actions of White Winston have caused substantial harm to the Debtor….The Debtor has devoted substantial time, effort and capital towards building its brand and creating a cutting edge media platform. The actions of White Winston will not stop the Debtor’s efforts to continue providing the best in media and technology for the benefit of its shareholders, creditors and the LGBT community.”
The court will evaluate the credibility of each party's claims.