Private Media Group to Hold Special Board Meeting Friday

LAS VEGAS — Private Media Group has been given the green light to hold a special meeting of its board of directors on Friday.

The meeting was approved Tuesday by Clark County, Nev., Judge Elizabeth Gonzalez, who has ordered that all plans for company board meetings be cleared through the court.

Gonzalez granted the meeting at the request of Eric Johnson, the Private board member who has been appointed by the court as Private's receiver.

At post time, it wasn't clear what agenda the board meeting will follow; however, a number of outstanding issues could point to what possibly could be discussed. It also was unclear where the board meeting would take place.

One possible scenario would have the board seeking nominations to fill the vacancy for the board seat previously held by Peter Dixinger, who recently resigned as a director and as a member of the company’s Audit Committee.

Another scenario would have the board considering whether the company should seek protection under federal bankruptcy laws.

But Gonzalez, who earlier this month told the 12 counsel representing claimants and defendants that "nothing shocks me anymore" about the battle over control of the company, said that if the board were to weigh bankruptcy, the receiver would have the last word.

"The decision as to whether a bankruptcy filing is appropriate is in the receiver's hands," Gonzalez said at a hearing on Sept. 1. "The board cannot be the entity that authorizes the bankruptcy. The receiver has to be the entity that authorizes it.

"I certainly don't have a problem with the board getting together as a group to have a meeting, although every decision that's going to be made about the company is the receiver's decision."

Attorney Thomas Kummer, who represents Johnson, declined to discuss Friday's board meeting agenda with XBIZ.

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