Regent Communications, a radio broadcasting company that operates 62 stations throughout the U.S., filed chapter 11 bankruptcy petitions in the Delaware Bankruptcy Court on March 1, 2010. According to documents filed in support of Regent’s bankruptcy petitions, the company enters bankruptcy with a pre-bankruptcy restructuring agreement that is supported by a large majority of Regent’s prepetition senior lenders. (See Regent’s Declaration in Support of Bankruptcy Petitions here). According to Regent’s Declaration, the company’s proposed Plan of Reorganization “provides for a full cash recovery to holders of general unsecured claims or such other treatment so as to render such holders unimpaired.”
Regent attributes its need for bankruptcy on the general decline in ad revenue in the radio industry. Radio companies rely on advertising dollars to operate. The current recession has led many companies to cut back on advertising. Regent also admits that it is highly overleveraged – its prepetition debt to lenders is approximately $204 million in secured loans (against assets of $166 million).
Soon after filing for bankruptcy, Regent filed a motion seeking approval of its Disclosure Statement. The Honorable Kevin Gross, the judge presiding over Regent’s bankruptcy, entered an Order on March 2, 2010 scheduling a hearing to consider Regent’s Disclosure Statement on March 22, 2010 at 10:00 a.m. EST. You may download a copy of Regent’s Bankruptcy Petition here.