VivaTysons Magazine filed for bankruptcy last month after running up hundreds of thousands in debt, but the publication is now seeking to have its case dismissed.
An attorney for VivaTysons filed a motion asking a federal bankruptcy judge to dismiss the Chapter 11 case, arguing VivaTysons can better function and pay its debts outside of the bankruptcy process.
Among other reasons for exiting bankruptcy, the filing says an unnamed magazine competitor tried to use the bankruptcy to poach advertising clients from VivaTysons. (For the record, it wasn’t us. -Ed.)
From the filing:
The Debtor seeks to dismiss its case “for cause” for the following reasons: (i) the Debtor believes that it is losing essential advertising revenue as a result of its filing for bankruptcy; (ii) the Debtor is experiencing difficulty complying with the administrative burdens of chapter 11; and (iii) the Debtor is hopeful that it can achieve settlements with its creditors outside of bankruptcy. The Debtor believes its creditors will obtain a greater dividend outside of bankruptcy than pursuant to a plan in the bankruptcy case.
After the Petition Date, at least one of the Debtor’s competitors contacted the Debtor’s advertisers and falsely stated to the Debtor’s advertisers that, as a result of the bankruptcy filing, the Debtor was “closed.” The Debtor’s competitor used the bankruptcy filing and alleged “closing” to implore the Debtor’s advertisers to advertise in the competitor’s magazine instead of the Debtor’s magazine. The Debtor believes that it has lost essential advertising revenue because of the actions of its competitors as a result of the bankruptcy filing.
VivaTysons says in the filing that it owes four small business lenders and banks more than $250,000 collectively. It also owes money to its printing company, the printing company’s owner and potentially two other financial companies. The parent company of Washingtonian Magazine also filed a claim, saying it is owed $50,000 by Tysons-based Johnny Hanna & Associates, which owns VivaTysons.
VivaTysons is published every other month. It is mailed to readers and distributed to local businesses in Tysons, McLean, Falls Church, Vienna, Great Falls and Oakton.