Regent Files for Bankruptcy Reorg

Regent Communications, an owner and operator of 62 radio stations in 13 midsized markets, announced Monday (March 1) it has filed for prearranged bankruptcy reorganization after reaching an agreement in principal with its lenders. The restructuring will eliminate about $87 million of the company’s debt and put majority equity control in the hands of Oaktree Capital Management.

As part of the agreement, current senior debt-holders will convert their holdings in to a new series of equity in Regent, while current public equity shareholders will receive 12.8 cents for each share they own. The parties have signed binding agreements to support the restructuring, filed with the U.S. Bankruptcy Court for the District of Delaware.

In its press release, Regent said the process would have no impact on the radio group’s day-to-day operations, or result in any changes to senior leadership.

“We are pleased to move forward with the majority of our senior lenders in taking the necessary steps to substantially strengthen our capital structure,” said Bill Stakelin, president and chief executive officer of Regent. “This is a solution that preserves Regent’s unique voice in the nation’s mid-sized media markets and enhances our ability to fully benefit from the rebound in the nation’s advertising industry.”