Recent Developments
In 1990 Percy Sutton retired as chairman of the board of Inner City Broadcasting, though he remained as chairman emeritus until his death in 2009. He was succeeded by his son Pierre Sutton, who continues to serve in that capacity.
In 1999 Inner City lost control of the Apollo Theatre after an investigation by the New York State Attorney General's office (completed by Eliot Spitzer) found that members of the nonprofit Apollo Theatre Foundation, led by Charles Rangel, retained revenues generated by production of It's Showtime at the Apollo. The final decision resulted in Rangel stepping down as chairman of the foundation; he was replaced by actor Ossie Davis. Time Warner took over operating control of the theatre as part of the final decision.
In August 2004, ICBC redeemed nearly $140 million accreted value of redeemable preferred stock in a recapitalization led by GE Capital and Alta Communications, a Boston-based private equity firm.
By 2006 Inner City had sold or otherwise disposed of the majority of its investments outside of its core radio stations. The last remaining investment, Urban Cable Works of Philadelphia, L.P. (“Urban Cable”), was sold on November 22, 2005 to Time Warner Cable. Time Warner Cable purchased the 60% interest in Urban Cable for $51 million in cash, net of cash acquired, and the assumption of $44 million of Urban Cable’s third-party debt. During 2004, Time Warner Cable made cash payments of $34 million to Inner City to settle certain disputes regarding the joint venture.
On August 22, 2011, Inner City's creditors petitioned the United States Bankruptcy Court to force the firm to declare Chapter 11 bankruptcy on grounds that the company's executives failed to accept a buyout offer. A filing resulted in majority control of Inner City being taken over by Ron Burkle's Yucaipa Companies, and basketball legend Earvin "Magic" Johnson's Magic Johnson Enterprises. The purchase of 15 Inner City stations by YMF Media LLC was consummated on October 19, 2012, at a purchase price of $180 million.
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