Las Vegas creditors owed in 944 Media case

Los Angeles-based 944 Media, which publishes in Las Vegas, other major U.S. cities and operates 944.com, has filed for Chapter 11 bankruptcy reorganization, listing estimated assets of $1 million to $10 million and estimated liabilities of $10 million to $50 million.

The case was filed Tuesday in U.S. Bankruptcy Court in the Central District of California in Los Angeles.

The largest claim among more than 200 creditors is $2.45 million owed to Creel Printing and Publishing of Las Vegas. Curtis Cover Trend Print of Costa Mesa, Calif., is owed $276,527; a Phoenix company is owed $209,546 for rents; and Wendoh Media Cos. of Las Vegas is owed $172,380 for rents, printing services and commissions.

Michael Gottfried, attorney for the debtor, said 944 Media is a viable business and that the issues will get resolved in bankruptcy.

The voluntary Chapter 11 filing was brought on by certain litigation, including two state court lawsuits, he said. Several of the claims are being disputed.

"From my view, this is a good business that's been disrupted by litigation," Gottfried said from Los Angeles. "There's always going to be issues."

The fashion, entertainment and lifestyle magazine reports annual circulation of 3.4 million and is distributed through hotels at major travel destinations, including Las Vegas.

"It gets a good target from being placed in the hotels," Gottfried said. "The basic demographic it appeals to is a fairly young, affluent group of people."

Founder and chief executive officer Marc Lotenberg said publication of 944 Magazine and operation of 944.com will continue as usual.

"The whole point of this proceeding is to enable us to keep doing what we do while resolving the litigation in an orderly process," Lotenberg said in a company statement.

"We are confident that 944 Media will be able to resolve our pending issues, but prudence dictates that we take steps to protect ourselves, our employees and our clients through the Chapter 11 process," he said.