Reach the final of the cola, Hollywood News Biz GM bankruptcy bad for television …
Unsecured creditors include companies such as Paris-based Publicis and Starcom MediaVest Group division and the 2 nd largest U.S. advertising agency Interpublic Group and McCann Erickson unit. However, both advertising agencies to keep a GM account, and GM is left with advertising agencies, until the car company out of bankruptcy. In a horrible place in the back of the line ..So where does this leave the television business? General Motors Sucks to be more prominent advertising conglomerates and their subsidiaries something like $ 167 million in unpaid fees. And not even going to receive 100% of their claims, according to news reports and Bloomberg.
(Interpublic also has Hollywood public relations and / production management companies.) Broadcasting & Cable, says that this has become a “major problem” among the television companies. Interpublic CFO Frank Mergenthaler said April 28 the company in cash for GM exposure could be $ 150 million in a bankruptcy. Nobody knows how much the ad agency and others in the top 50 unsecured creditors will receive from GM until the car makes its debut on the bankruptcy court. And only after that advertisers get their money from GM to anyone to start thinking about the payment of the CBS, ABC, CNN, Fox News Channel, and TV by other companies. “It provoked a debate among media buying agencies and their TV partners through responsibility and are paid when, and that is a preferred supplier.” Like, duh. These advertisers buy air time with television networks, cable channels, syndicators and station groups. So nobody knows how far the television business will receive after that. I suspect Century City and Midtown law firms are about to accumulate billable hours on this