Home Login RADIO ONLINE RSS Facebook
Advertisement

Alpha Media Files for Chapter 11 Bankruptcy Protection


Alpha Media
Alpha Media

Alpha Media has entered into a restructuring agreement with certain lenders to reduce its debt, as well as raise incremental capital to allow the company to navigate current market conditions and pursue growth opportunities. The company expects no disruption to its broadcast operations, customers or employees. Management will remain in place and continue to maintain its day-to-day operations.

To implement the restructuring, the company has filed a pre-arranged plan of re-organization, disclosure statement and voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in the Eastern District of Virginia. Certain of the company's existing lenders have agreed to provide new capital in the form of committed debtor-in-possession and exit financing. These lenders, together with management, are expected to collectively own 100% of the equity of the re-organized company, subject to regulatory approvals from the FCC.

The restructuring of the company's balance sheet will require receipt of bankruptcy court approval and certain regulatory, including FCC, approvals and satisfaction of other customary conditions. The vompany expects to conclude the restructuring process in the first half of 2021.

"We have made significant progress in aggressively deleveraging our business in recent years. As we proceed with our financial restructuring to improve our capital structure and manage through the ongoing downturn caused by the COVID-19 pandemic, the agreement we reached today will leave Alpha Media well positioned for a market recovery as a stronger and even more competitive company," said Alpha Media Chairman and Chief Executive Officer Bob Proffitt.

Proffitt continued, "Our core business continues to perform well despite current market challenges. We will continue to invest in our talented teams to foster the unique culture that has been key to Alpha Media's success in delivering dynamic, diverse and exciting content to our communities."

Alpha Media said it will continue operating its stations without interruption, providing engaging news, music, sports and entertainment to its communities. The company's day-to-day operations will continue in the normal course during this process. Alpha Media maintains strong relationships with its advertisers, communities and listeners, and those relationships will continue.

Sheppard, Mullin, Richter & Hampton LLP is serving as Alpha Media's lead restructuring counsel in connection with this process, and Kutak Rock LLP is serving as Virginia counsel. Wiley Rein LLP is serving as the Company's FCC counsel. EY Turnaround Management Services LLC and Moelis & Co. are serving as the company's financial advisors.

Kramer Levin Naftalis & Frankel LLP, Quinn Emanuel Urquhart & Sullivan, LLP, McGuireWoods LLP, and Fletcher Heald & Hildreth PLC are serving as legal co-counsel to an ad hoc group of certain lenders, and GLC Advisors & Co. is serving as financial advisor.

Advertisement

Latest Radio Stories

97.1 The Eagle/Dallas Afternoon Host Russ Martin Found Dead
Russ Martin
Russ Martin
Sad news out of Dallas-Fort Worth as 97.1 The Eagle afternoon host Russ Martin was found dead inside of his Frisco home a little after midnight Saturday according to the Frisco police department. Martin was 60-years-old. The cause of his death More

Entercom Unveils Enhanced Programming Leadership Structure
Entercom has announced a new programming leadership structure for its central programming team, positioning the company for further growth and increased capacity for multi-platform premium content development. "This enhanced leadership team will More

Andrew Jeffries Resigns from iHM/Los Angeles as EVP/P
Andrew Jeffries
Andrew Jeffries
iHeartMedia/Los Angeles EVP/Programming Andrew Jeffries has reigned and will exit on May 28. He's returning to New Zealand after being away for 25 years to spend more time with family and friends. According to an internal memo from iHeartMedia More
Advertisement

Midwest Communications' Skramstad Announces Retirement
Shawn Skramstad
Shawn Skramstad
Midwest Communications/Duluth, MN, Vice President and Market Manager Shawn Skramstad has announced his retirement after a 47-year radio broadcasting career. He began his career on the programming side before shifting to sales. Skramstad spent time More

FCC Adopts Report & Order on Emergency Broadband Program
In a unanimous vote, the FCC has formally adopted a Report and Order that establishes the Emergency Broadband Benefit Program, a $3.2 billion federal initiative to provide qualifying households discounts on their internet service bills and an More

KDKA-FM Extends Broadcast Partnership with Pirates
Entercom and the Pittsburgh Pirates have announced today a multiyear radio broadcast contract extension. 93.7 The Fan (KDKA-FM) will continue to be the Pirates flagship radio station, as it has since 2012, airing all Spring Training and regular More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement