Gems TV Tunes Out as Confirmation of Bankruptcy Hit Airwaves

(IDEX Online News) - Gems TV's Chapter 11 request was approved last Wednesday in a Delaware Bankruptcy court. The request cited more than $100 million in debt, Bloomberg reported yesterday.

Gems TV, a Nevada based television gemstone jewelry retailer, sought Chapter 11 protection from creditors in April after having shutdown all operations a month earlier. The petition, U.S. Bankruptcy Court, District of Delaware, No: 10-1158, cites Gems TV assets at less than $50 million.

DIRECTV Inc., though originally suing Gems TV for a breach of an affiliation agreement, waived its claims against Gems TV, allowing unsecured creditors to recover 95 percent to 100 percent of their $28 million in claims according to a Bloomberg report in April. According to Dr. Robert Manning of the Center for Consumer Financial Services, average recovery ranges from 25 percent to 65 percent.

The $93 million in subordinate notes have an expected recovery of 2.1 percent..