CBS Radio and Entercom Communications, Interep's two largest clients, have signed national sales representation agreements with Katz Radio Group, a division of Katz Media Group.
The agreements, announced late Tuesday (Nov. 25) follow a decision by the U. S. Bankruptcy Court for the Southern District of New York to allow Katz to approach Interep's clients and negotiate deals in exchange for $3.6 million cash to Interep.
CBS Radio, operator of 140 radio stations in 49 of the top 50 markets, represented about one-third of Interep's total revenue. Entercom is one of the five largest radio groups in the nation, with 110 stations in 23 of the nation's largest markets.
With CBS and Entercom, the Clear Channel-owned rep conglomerate is well on its way to representing all of Interep's clients and solidifying its position as radio's sole national sales representation firm.
To represent CBS Radio and Entercom, Katz will create a new, separate sales organization based in New York and operating out of 12 offices in the country. The firm will be led by Jana Cosgrove, formerly president of Interep's CBS Radio Sales. She will report to Mark Gray, president of Katz Radio Group.
"We're delighted to represent CBS Radio and Entercom, two of the country's most well-respected broadcasters," said Stu Olds, CEO of Katz Media Group.
Interep filed in late October to convert its bankruptcy Chapter 11 status to Chapter 7 liquidation in order to pay the company's debtors. Under financial pressure for the past three years, Interep lost a number of representation contracts with major groups to Katz, including Radio One, Cumulus, and Citadel.
Interep still has other assets to dispose of, including representations agreements for a small group of TV stations, and an interactive division.