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The Wall Street Journal: Apollo, Fox sued by ‘American Idol’ lenders

Core Entertainment Inc.’s lenders aren’t happy with the outcome of the “American Idol” producer’s bankruptcy restructuring.

In a lawsuit filed Monday in U.S. Superior Court in Los Angeles, a trustee for Core’s prebankruptcy lenders accused the production company’s private-equity backer Apollo Global Management as well as 21st Century Fox Inc. FOX, -0.72% of scheming to strip the company of its cash and most valuable assets while leaving them holding the bag.

“The lawsuit is without merit and we intend to defend ourselves vigorously,” a spokesman for Apollo said Thursday.

When Core sought bankruptcy protection earlier this year, it blamed its troubles on the declining viewership of its anchor series, “American Idol,” which caused revenue to take a substantial hit.

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