Alpha Media Files for Chapter 11 Bankruptcy Protection

[Y2kTheNewOldies]

https://news.****************/articles/b16547/Alpha-Media-Files-for-Chapter-11-Bankruptcy-Protection

According to the report they cite COVID-19 downturns as a factor in the bankruptcy situation.

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.

 

[Kelly A]

Duplicate post

 

[Y2kTheNewOldies]

Who's Owed What: Behind Alpha's Restructuring Plan | Radio & Television Business Report

Just after Midnight on Monday, Alpha Media filed Official Form 201, a Voluntary Petition for Non-Individuals Filing for Bankruptcy with a Virginia Eastern Bankruptcy Court. The case has been assigned

www.rbr.com

Here are some of the parties that Alpha Media owes to its creditors note this includes IheartRadio over syndication content contract that Alpha Media owes to.

At the top of the list is ICG North America Holdings Ltd., which specializes in private debt, equity and credit, “providing financing solutions across the capital structure,” and “pioneering new strategies where we can deliver value to our investors.”

ICG holds an unsecured claim of $103,974,381.40 against Alpha.

The second-largest unsecured claim? It is held by Nielsen, and is valued at $2,366,735.81.

Alpha Media’s No. 3 creditor by dollar amount is Broadcast Music, Inc. (BMI), and it is owed $823,829.43. Similarly, ASCAP is the No. 5 creditor, and is owed $216,688.00. Then, there is Irving Azoff’s Global Music Rights (GMR), owed $70,101.20; the Radio Music License Committee (RMLC), owed $69,667.00; and Sound Exchange, owed $91,335.96.

Also on the creditor’s list are the nation’s foremost tower companies. Crown Castle is owed $748,597.53; American Tower is owed $209,139.89; and Steve Bernstein’s SBA is owed $149,616.56 by Alpha.

 

[TheBigA]

They really never recovered from the purchase of Digity in 2015. The debt they added from that purchase seemed to be insurmountable. Then you add Covid, and it's the final blow. Interesting to see Nielsen and all the music companies among the creditors.

 

[semoochie]

If I recall correctly, this is the original owner of Cumulus.

 

[TheBigA]

If I recall correctly, this is the original owner of Cumulus.

Huh? The founder of Alpha was Larry Wilson, who also founded Citadel. Citadel was purchased by Cumulus.

I remember when Larry sold Citadel, he was seen as someone who was a benevolent owner during consolidation, and radio critics looked forward to the day when he'd return to owning radio stations.

 

[gr8oldies]

Huh? The founder of Alpha was Larry Wilson, who also founded Citadel. Citadel was purchased by Cumulus.

I remember when Larry sold Citadel, he was seen as someone who was a benevolent owner during consolidation, and radio critics looked forward to the day when he'd return to owning radio stations.

As I recall, the original company was L&L, which meant "live and local". That didn't quite pan out.

 

[semoochie]

Huh? The founder of Alpha was Larry Wilson, who also founded Citadel. Citadel was purchased by Cumulus.

I remember when Larry sold Citadel, he was seen as someone who was a benevolent owner during consolidation, and radio critics looked forward to the day when he'd return to owning radio stations.

Apparently, I don't "recall correctly". I knew it was a large company that didn't own any local stations and started with a "C". I forgot about Citadel. They both have seven letters.

 

[Y2kTheNewOldies]

Larry Wilson’s Allegations Are ‘Baseless’ and ‘Inaccurate,’ Alpha Media Says.

Alpha Media is firing back at a highly charged petition filed with the FCC by its former CEO Larry Wilson that could delay the company’s emergence from chapter 11 bankruptcy

www.insideradio.com

In FCC Filings, Larry Wilson and Paul Stone Attempt To Derail Alpha Media’s Financial Reorganization.

Two of Alpha Media’s minority owners have filed separate petitions with the FCC that could throw roadblocks in the company’s ongoing Chapter 11 financial reorganization. Former Alpha Media CEO Larry

www.insideradio.com

Here is more on how Alpha Media is handling Chapter 11.

 

[TheBigA]

Here is more on how Alpha Media is handling Chapter 11.

We've seen this story before. His lawsuits aren't going anywhere with the FCC. This is out of their area.

 

[seatownmedia]

The bigger picture is radio is in serious trouble. Yes, some manage to keep a certain level of local programming but the outlook is dim.

 

[TheBigA]

The bigger picture is radio is in serious trouble. Yes, some manage to keep a certain level of local programming but the outlook is dim.

Certain companies are in trouble. Each company that has filed for bankruptcy suffered from the exact same problem: Over-expansion that brought on too much debt. In the case of Alpha, they were doing fine until they bought a group of 116 stations that added $265 million in new debt (on top of what they already had). No business can operate with more debt than they can pay off.

 

[TheBigA]

More on the Alpha battle with Larry Wilson:

Alpha Strikes Back at Wilson - Radio Ink

In the ugly public battle between Alpha Media and former company CEO Larry Wilson, the latest blow in this drama is delivered by Alpha, in a filing with the FCC. Alpha Media is in the midst of a bankruptcy proceeding. Wilson is trying to derail that process. Here's the latest.

radioink.com

 

[Y2kTheNewOldies]

Alpha Media Exits Chapter 11 Bankruptcy – RadioInsight

After receiving FCC approval on Tuesday (see below), Alpha Media has announced it has completed its exit from Chapter 11 bankruptcy restructuring. Alpha Media (the “Company”) today announced that it successfully completed its financial restructuring and emerged from Chapter 11 with a...

radioinsight.com

Here is an Update on the Alpha Media Bankruptcy issue.

 

[Y2kTheNewOldies]

https://news.****************/cgi-bin/rol.exe/headline_id=b16750

Here is more on the Alpha Media Restructuring talks.

Alpha Media has completed its financial restructuring after filing Chapter 11 bankruptcy to deal with $267 million of debt in January. The company, affected greatly during the pandemic, says it now has the incremental capital to pursue growth opportunities, while enhancing its position as mid-market broadcaster across 44 local markets in the U.S.

Alpha CEO Bob Proffitt said, "This is an important achievement for Alpha Media as we strengthen our company's ability to grow. Today Alpha Media begins its next chapter, with an improved financial foundation, new capital and enhanced competitive positioning. We have greater financial resources and flexibility, and we will continue to invest in new digital capabilities to better serve our advertisers and communities across our local markets."

 

[TheBigA]

As part of its financial restructuring, Alpha applies to the FCC to become a majority foreign-owned broadcaster:

Alpha Seeks To Become First Radio Group Majority-Owned By Foreign Investors.

Alpha Media is poised to become the first radio company to be majority-owned by foreign investors as it takes the next step in its post-bankruptcy reorganization. The company estimates that

www.insideradio.com

 

[Kelly A]

I know this is a survival play, but giving control of any U.S. company to foreign investors, is almost worse than giving employees majority of the company shares/ownership. Either could eventually turn on the management team, kicking all to the curb. At that point the company becomes a rudderless ship.

 

[TheBigA]

Either could eventually turn on the management team, kicking all to the curb. At that point the company becomes a rudderless ship.

Huh? Didn't that basically happen as a result of bankruptcy? The current management works for the lenders, who received equity in the company. I can think of another radio company that kicked its management to the curb: Cumulus. The board fired the company's founder, Lew Dickey, and replaced him with Mary Berner. She ended up taking them into bankruptcy. She's still there, and the company has also applied to the FCC for foreign investors. Company management works at the pleasure of the company board. If they want a change, management gets kicked to the curb, regardless of circumstance.

Radio companies are looking to foreign investors because Americans don't really see much value in owning broadcasting any more. They say no one listens. Investors from other countries think differently.

 

[Kelly A]

Huh? Didn't that basically happen as a result of bankruptcy? The current management works for the lenders, who received equity in the company. I can think of another radio company that kicked its management to the curb: Cumulus. The board fired the company's founder, Lew Dickey, and replaced him with Mary Berner. She ended up taking them into bankruptcy. Company management works at the pleasure of the company board. If they want a change, management gets kicked to the curb, regardless of circumstance.

I was talking about after approval of the restructure plus ownership percentage approval. Let's assume a new management team is put into place that now answer to the foreign ownership group. If the corporate management team is made up of radio/media folks, they will be constantly walking on thin ice because the foreign group is even less knowledgeable about how domestic media consumption works than most of the people who contribute to this discussion board. I sure as heck wouldn't want to work for them. One reason I've turned down offers to work at RT, twice.

Radio companies are looking to foreign investors because Americans don't really see much value in owning broadcasting any more. They say no one listens. Investors from other countries think differently.

Other countries are less developed in the new media world. They're always looking to get into some form of 'show business' here in the U.S.

 

[TheBigA]

I was talking about after approval of the restructure plus ownership percentage approval.

It's up to the bankruptcy judge and the FCC. That's another reason why it's good to avoid bankruptcy. If the "radio pros" couldn't do that, they deserve whatever comes next.