Regent Shareholder Seeks Public Holders Committee

RADIO ONLINE | , , | :am CT

A large shareholder in Regent Communications, Resilient Capital Management with 2.8 million shares, has filed a motion with bankruptcy court that seeks to appoint a committee to represent public shareholders during the company's Chapter 11 reorganization. Under Regent's prepackaged bankruptcy plan the common stock with all shareholders would be replaced by a prorated share of $5.5 million.

In a court filing, Resilient claims Regent's equity "retains significant value even with the company in bankruptcy." Resilient also says that an equity committee would allow shareholders to participate in the Chapter 11 plan negotiations, alleging Regent's creditors "have no incentive to ensure that equity holders receive fair value" and that "debtors cannot adequately represent the interest of equity while maintaining the support of their creditor constituents for the existing plan process."