Gems TV Tunes Out as Confirmation of Bankruptcy Hit AirwavesOctober 19, 10
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..