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Regent goes pre-arranged Chapter XI; what effect on upstate NY?

B

Bob1370

Guest
Regent has just filed a pre-arranged Chapter XI which will make its debt-holders into principal equity partners and, according to reports here and on AllAccess, compensate current shareholders at the princely sum of 12 cents a share.

The company is a major presence in Buffalo, Albany and Utica-Rome. Wonder what this will mean in those markets, including Buffalo, which is the corporate crown jewel since they overpaid for the former CBS Buffalo cluster?
 
Buffalo is the reason that Blowhard Bill Stakelin had to file bankruptcy. His ego was such that he had to "do a deal with CBS" and got taken to the cleaners much like Farid did with ABC. The difference is that Farid was smart enough to make sure he had a job when the smoke cleared.No such luck for "Dr.Willie" as he will be carried out on a stretcher largely thanks to overpaying for Buffalo.He be toast!
 
Bob1370 said:
Regent has just filed a pre-arranged Chapter XI which will make its debt-holders into principal equity partners and, according to reports here and on AllAccess, compensate current shareholders at the princely sum of 12 cents a share.

The company is a major presence in Buffalo, Albany and Utica-Rome. Wonder what this will mean in those markets, including Buffalo, which is the corporate crown jewel since they overpaid for the former CBS Buffalo cluster?
Click to expand...

Probably nothing will change on the local level. They're pretty much cut to the bone as it is.
 
The official press release can be found here: http://www.prnewswire.com/news-releases/regent-communications-announces-consensual-restructuring-agreement-with-senior-lenders-85809592.html

Now Buffalo is home to not one but two broadcast companies that have declared bankruptcy. Two companies which control seven FM radio stations and two AM radio stations and by rights shouldn't be allowed to run a hot dog stand. Apologies to the fine folks at Ted's. Regent, following in the footsteps of broadcast legacies like Citadel. This is what happens when a company bites off more than it can chew, let alone swallow. It chokes. The dukechutes at Regent paid $125 million for four FMs and an AM in Buffalo, Arbitron market #53. Regent last year sold the AM for $1.3 million.

Some small consolation, Regent shareholders get 12.8 cents for each share held. Citadel shareholders were wiped out. So now, Entercom rules the Buffalo roost with three FMs and four AMs and a share price that has some respectability. Entercom has two healthy AMs and two AMs that are on life support; two robust FMs and The Lake, which sucks bilge water. (Boating reference for Captain Greed, yachtsman of the year.)

But if you bought $1 thousand worth of ETM on March 2, 2009 your investment increased ten fold. Had you done the same with Citadel or Regent, you'd have lost your assets. That's just the way it works at the Wall Street Casino.

Bill Stakelin is right. Nothing will change, at least for him. Regent has had $87 million worth of debt cleared from its books. It has an $11 million cash position. You can almost hear 'em singin' "The sun will come out tomorrow..." Stakelin will land safely thanks to a golden parachute, while the great unwashed in his company will hang from their fingernails trying to keep their jobs, if at all.

If you're going to hustle people, don't do it on street corners. Go big and make a real killing in broadcasting!
 
Bob1370 said:
which is the corporate crown jewel since they overpaid for the former CBS Buffalo cluster?
Click to expand...

How can you overpay for a crown jewel?

Everybody in Buffalo agrees WYRK is a great station, and it hasn't suffered in audience or revenue since the sale.

They haven't cut staff, they're still largely live & local, they still play a great variety of music, and they're the #1 FM station in WNY. Even with the debt load.

Regent only bought 5 stations, which is hardly comparable to what Citadel did with ABC. They smartly sold WECK for $1.3 million. Maybe Culver Communications overpaid. Was $125 million too much in 2005? I don't think so. Would they have spent as much now? Of course not. But that's not overpaying. That's hindsight.

No one expected the economy to tank. No one expected radio values to dive, especially at profitable stations. And CBS would not have done a better job running the stations. Everyone hates big corporate radio, and this is what happens when David makes a deal with Golliath. It's also one reason why all the Davids are staying away from buying radio now, even at 80s prices.

This may be more like what Rox talks about, where they've chopped off some debt, and can now move forward. Citadel, however, is still in a lot of trouble.
 
When Regent bought Buffalo EVERYONE knew that things were shaky in the economy. In fact Farid was saying that Buffalo was a 'troubled" market while Dr. Willy was putting up 125 large of OPM to play in Buffalo.It was the single most idiotic purchase of the past decade!
You may hate to hear this but Farid and Citadel are much smarter. They will come out of 11 with less debt and top management in place. Regent will come out of 11 with a new CEO and many markets that need "disposing".Dr. Willy's ride is over.Stakelins "new contract" has another name- severance.
 
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