Financial Woes
Avalon Equity Fund, an investment fund that owns several gay media outlets including Washington Blade, South Florida Blade, 411 Magazine, David Atlanta, Southern Voice (SOVO) and Genre magazine were found to be in a condition the Small Business Administration (SBA) refers to as capital impairment. This means that Avalon did not maintain the necessary outside investments required under the terms of loans borrowed from the SBA totaling $38M. A lawsuit filed by SBA revealed Avalon had little or no outside capital left due to divestiture by investors, losses in revenue or asset values or a combination of the three. Avalon Equity Fund is in receivership with SBA, which will allow SBA to sell off its assets to satisfy the loans.
In November 2009, the paper was shut down because of the financial status of its parent company, Window Media and its majority stockholder, Avalon Equity Partners.
Read more about this topic: South Florida Blade
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