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Debt Management Law News

March 2, 2010

Regent Files Bankruptcy to Give Lenders Radio Company

Regent Communications Inc., the owner of 62 radio stations in 13 markets, filed for bankruptcy court protection today from creditors, who are owed about $211 million.

The company and more than 40 affiliates filed a Chapter 11 petition in U.S. Bankruptcy Court in Wilmington, Delaware today with plans to cut $87 million in debt in exchange for giving lenders control of the broadcaster, according to court records and a company statement. Chapter 11 of the bankruptcy code is typically used by companies that plan to reorganize under court protection and continue operating after cutting debt.

“This is a solution that preserves Regent’s unique voice in the nation’s mid-sized media markets,” company President and Chief Executive Officer Bill Stakelin said in the statement.

Under terms of a reorganization proposal worked out before the broadcaster filed its bankruptcy, affiliates of Oaktree Capital Management L.P. will own a majority of the new stock to be issued once Regent leaves bankruptcy.

Current stockholders will receive about $5.5 million and the company will have a new loan of $95 million, according court records. A judge must first approve the reorganization proposal.

The company’s shares dropped nearly 17 percent to 15 cents at 9:48 a.m. New York time in over-the-counter trading.

The company said the reorganization should not affect its day-to-day operations because it has $11 million in cash.

The company has radio stations in 13, mid-sized radio markets.

The case is In re Regent Communications, Inc. 10-10632, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

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