Full payment by ABC Radio Networks and the Walt Disney Co. settles a dispute with Radio Aahs and will allow the bankrupt company to make payments to creditors under a liquidation plan.
According to a report by American City Business Journals, shares of Intelefilm Corp., formerly Radio Aahs, jumped more than 20% after it said it received payment of $12.4 million. Radio Aahs had sued ABC/Disney after the latter terminated a children’s radio deal to start its own network. A jury awarded Radio Aahs $9.5 million plus $2.6 million in interest in 2002.
Intelefilm now supplies products and services to digitize and manipulate video and audio files. It filed for Chapter 11 in 2002, according to American City Business Journals. Intelefilm said Disney and ABC paid the full amount last week, settling the case.
Shareholders, the publication reported, will receive any payment after creditors’ claims have been settled.
Radio Aahs Successor Gets Payment From ABC/Disney
Radio Aahs Successor Gets Payment From ABC/Disney
