Regent Settles w/Shareholder Over Equity Committee
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A large shareholder in Regent Communications, Resilient Capital Management with 2.8 million shares, has settled with Regent for $125,000. Under the agreement, Resilient will drop its claims that Regent's equity "retains significant value even with the company in bankruptcy" and will no longer seek a equity committee.
Even though Resilient filed a motion with bankruptcy court that sought to appoint a committee to represent public shareholders during the company's Chapter 11 reorganization, the motion was denied. However, Regent says, Resilient had "communicated to the debtors that it planned to imminently file a motion seeking to a stay," which led to the settlement.
Under Regent's prepackaged bankruptcy plan the common stock with all shareholders would be replaced by a prorated share of $5.5 million.
