Update to the Source Interlink’s débâcle, you remember the publisher of your favorite surfer/skater magazines.

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The Internal Revenue Service has filed an objection to Source Interlink’s plan of reorganization, claiming the magazine publisher and distributor owes more than $10 million in unpaid taxes.

The objection, filed last week in Delaware’s U.S. Bankruptcy Court, said Source’s reorganization plan cannot be confirmed because it does not ensure adequate payment of the IRS’ tax claims. The IRS said Source and its affiliates have not filed a “staggering” number of federal tax returns.

It was not immediately clear how the objection will effect Source’s emergence from bankruptcy protection. A Source spokesperson did not return a request for comment. An attorney with Source’s legal counsel, Pachulski Stang & Hutz, also did not return a request for comment.

Last month, the company, controlled by billionaire Ron Burkle‘s Yucaipa Cos., filed for Chapter 11 bankruptcy protection—saying it reached an agreement with its lenders to “eliminate approximately $1 billion dollars of existing debt” and privatize the company.

Source’s lenders also agreed to funnel $100 million in additional liquidity into the company. Source, in turn, agreed to pay “all of its vendors in full and on time.” Source said it expected to emerge from bankruptcy protection within 35 days.

The company also is seeking permission to borrow up to $385 million in post-petition financing as part of its plan to eliminate the $1 billion in debt, according to a report on Law360.com. It is said that Source owes its creditors about $733 million.

A number of other creditors have also filed objections to Source’s plan of reorganization. According to a Law360.com report, SINV LLC, one of Source’s landlords, filed an objection stating that the planned consolidation of Source’s affiliates could “hurt its claims.”

Automotive media company eVox Productions also objected to the plan, claiming, among a number of complaints, that it violates a licensing agreement it had with Source.

According to a report in the New York Post, a Source attorney said the IRS claims are current payroll taxes, not past-due back taxes.

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The Xcel Supertubes Showdown is getting ready for its inaugural contest, with a full invite-only lineup and heat draw to be announced June 3 at the contest’s opening event.

With a waiting period of June 5 -21 at Jeffreys Bay, 16 invited local and Supers experts will compete for an enticing first-place prize of entry into the Von Zipper Wildcard Trials, yielding 3 slots into the main event of the Billabong Pro Jeffrey’s Bay WCT event.

Final selection of invitees and heat draws will be announced June 3 at the opening function (The Mexican Restaurant, J-Bay).

This 1-day contest will consist of four heats and a four-man final. The event is presented by Xcel and sponsored by DaKine, Von Zipper, Red Bull, Billabong, Nixon, and Sector 9.

For more information on the Supertubes Showdown opening event, please visit http://www.xcelwetsuits.com/

Paddle Outs

SIMA & friends of Dick Baker host memorial paddle out

The SIMA and surf industry families are deeply saddened by the recent passing of SIMA’s longtime president, leader and guiding light, Dick Baker, after his two-year battle with cancer. The family appreciates the outpouring of love and support that have been expressed.  A public Paddle Out has been planned in Dick’s honor.  Please find the details below:

PADDLE OUT SERVICE IN MEMORY OF DICK BAKER

WHEN:
Sunday, May 31 –  3:00 p.m.

WHERE:
Doheny State Park
Picnic Areas A and B (map attached)

The service will begin in Picnic Area A and will include a traditional Paddle Out service in the water. Following the service, attendees are invited to surf Doheny and picnic in areas A and B, which are covered. Please bring your own beverages and food. Hawaiian singers and musicians will entertain. Festivities will continue until approximately two hours after the Paddle Out concludes.

DRIVING DIRECTIONS:
From San Diego:
I-5 North to Beach Cities exit
Once on exit ramp, bear left to Pacific Coast Highway North to Dana Point
Turn left at Dana Point Harbour Drive and make first left into Doheny State Park.  Ranger will provide directions.

From Orange County:
I-5 South exit Pacific Coast Highway North to Dana Point
Turn left at Dana Point Harbour Drive and make first left into Doheny State Park.  Ranger will provide directions.

ADDITIONAL DETAILS:
Parking on-site, and we suggest arriving early. San Onofre and California State Park parking passes are accepted, otherwise there is a standard parking fee of $10.  Please bring your own surfboard, towel, wetsuit (water temp approx 65 degrees), cooler and drinks (alcohol permitted).  Flowers will be provided for Paddle Out participants.

SENDING CONDOLENCES TO THE BAKER FAMILY:
In lieu of flowers, the Baker family appreciates any donations to be made to one of the following foundations in Dick’s honor:

•   SIMA Environmental Fund  http://www.sima.com/charitable-funds/environmental-fund.aspx
Checks should be made payable to the SIMA Environmental Fund and mailed to:
SIMA Environmental Fund – Dick Baker Remembrance
8 Argonaut, Ste. 170, Aliso Viejo, CA  92656

•  SIMA Humanitarian Fund http://www.sima.com/charitable-funds/humanitarian-fund.aspx
Checks should be made payable to the SIMA Humanitarian Fund and mailed to:
SIMA Humanitarian Fund – Dick Baker Remembrance
8 Argonaut, Ste. 170, Aliso Viejo, CA  92656

•   The San Clemente Educational Foundation
Donate online using the link above, or checks should be made payable to San Clemente Educational Foundation and mailed to:
San Clemente High School
P.O. Box 4538, San Clemente, CA  92674

Cards should be mailed to:
The Baker Family
c/o SIMA
8 Argonaut, Suite 170
Aliso Viejo, CA  92656

Again, please direct any questions or inquiries to the SIMA office.

SIMA – Surf Industry Manufacturers Association
8 Argonaut, Ste. 170
Aliso Viejo, CA  92656
Ph: 949.366.1164
Fax: 949.454.1406

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