Wednesday, March 17, 2004

TOWER TOTTERS, DOESN'T FALL DOWN: The now-just-American music store chain Tower has emerged from bankruptcy - just. After an almost record-breaking period of time in Chapter 11, the company's parent MTS Inc has reached a deal with its creditors - but at a cost. 85 per cent of the equity is being handed to the creditors, who in turn will write off USD80 million in debt. The biggest creditor - and, presumably, now the largest stockholder, is Boston bank Corporate Trust Services, who'd put up the cash for the ill-judged 1998 expansion programme.

We're far from convinced the creditors have any real interest in running a music store - we're guessing that while Tower think they've saved a music business, the new owners think they've got their hands on some prime real estate.


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