NextMedia..sound the death knell

[Speaker of Truth]

Similar to the pre-arranged protection plan filed Sunday by Citadel Broadcasting, this is a debt-for-equity exchange.

Also similar to the Citadel situation, management of the radio-and-outdoor firm says there will be “no impact on day-to-day operations.” (one more lie before they go)

Senior management like President/CEO Steve Dinetz remains in place and there won’t be any layoffs. (How many times did they use that line at WHBC? and what is the body count since 2006? 20? 25?)

Terms of the filing are that the first-lien debt and general unsecured creditors will be paid in full.

The creditors in line behind them will have their debt converted into 95% of the equity in NextMedia. (what's left of it)

The company will emerge from the plan with debt of about $128 million – a debt-to-EBITDA ratio of 5.5 times. (debt they will NEVER be able to cover)

NextMedia operates a total of 36 radio stations in the Carolinas, Texas, California, Wisconsin, Michigan, Ohio, and the area around Chicago.

NextMedia is privately-held, though it once tried to go public through an initial public offering.

For some of us, this day has been long in coming...I'm not going to be able to wipe the smile off my face for the rest of the day..couldn't happen to a nicer group of insurfferable bastards.

 

[SonoSational18]

I hate to break it to you while you're dancing on NextMedia's alleged grave, but their bankruptcy is probably the best thing that could happen. They did it in the shadow of Citadel's BK so they avoided the media (mostly trade media) spotlight and will emerge from this with a much lightened debt load. If you're looking for payback, you'll have to wait.

 

[Speaker of Truth]

NextMedia hardly did what they did "in the shadows"..All Access, Inside Radio, and every other trade publication had this front and center..Jerry Del Colliano devoted his Tuesday column to NMs bankruptcy..you think the folks at the Canton Rep didn't have this on every salesperson's desk yesterday, along with the folks on Freedom Ave and in Alliance?

NextMedia is now owned primarily by bankers who will do anything short of selling off their first born to get the money owned them..that rollar coaster is just starting to load..

 

[SonoSational18]

Yes, the trades had it... but the NextMedia story was totally eclipsed by the Citadel story that broke about the same time. Any salesperson from the Supository or Clear Channel who spent a lot of time negative-selling WHBC becaue their parent company went Chapter 11 is an idiot. So long as the programing doesn't change, the listeners won't care and as long as the listeners are there, why would WHBC be any less likely to drive customers into clients' stores than they were last Friday? Don't get me wrong, I'm not a big NextMedia fan, but this event will have very little impact on a local level. GM and Chrysler are in BK and they're still making cars. Continental Airlines went Chapter 11 not once, but twice, and they're still flying. Channel 8's parent company went BK some years ago and Dick Goddard kept coming to work and doing the weather. I'll say it again, NextMedia is likely to emerge from this a stronger company. Sorry to rain on your parade.

 

[Shadow]

Speaker was doing a little dancing...however he was spot on regarding the information.

NextMedia is saved short-term. But what's next? Hiring new talent and growing the ratings? Marketing to grow the diminishing audience? Umm nope. They have decimated the Canton stations. A once 20+ share combo they are lucky to be a 15 share combo this day in age.

Fred Chenevey is the only talented talk host on the station with any real numbers. Ron Ponder is a nice guy but a two hour PSA about simply boring topics. Dennis Miller is...umm Dennis Miller. Sam Borquin is great at PBP but his show is just a mailed in broadcast. Poor guy works 5 days per week, 4 hour shifts and then hauls his butt to some HS to call a game for a few more hours per night. And he still does those few hours every Saturday. Oh yeah they have those huge rights fees to pay for the "well below .500 " Indians and the "4-11" Browns. Yes teh Cavs are good but let's be honest. Besides a few Joe Tait purists (like myself) people don't listen to basketball. Oh yeah, Fox SPorts at night is huge in Canton. Choke.

FM? Well Mix is what it is. Morning show is very mediocre with Kathy cackling along at every utterance. Music is fine but how will they grow it to make up for the ads lost to 101.7? Can't happen. Q92 has their nice niche, KDD will take some money as always, ROck 106.9 is cranking along nicely. No where for Mix to go at this point.

The idiots running NextMedia in Canton really are clueless. Both Gawthrop and CLark just don't know what they are doing. DOesn't make them bad people...just people who shouldn't be running radio stations.