SEC Filing Reveals Regent Could Default on Credit Deal
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In a recent filing with the SEC, Regent Communications revealed that its lender, Bank of America, had notified the radio broadcaster that there has been a "specified default" under its credit agreement. Regent received the notice from the bank after its financial statement for 2008 was audited.
Bank of America notified Covington-based Regent that its audited financial statement includes language that constitutes a default of its credit agreement, triggering a 30-day period to remedy the default or face acceleration of the entire debt, plus interest. The "language" involves commentary from auditors regarding "uncertainty in the company's ability to continue as a going concern."
As of March 31, Regent had an outstanding balance of $195 million on its credit agreement. The company, which owns 62 stations in 13 markets, had previously disclosed that it was in negotiations with the Bank of America and other lenders.
