Regent Nearing the Edge?

[SirRoxalot]

Radio Info is reporting that Regent is in danger of default Bank of America considers their year-end statement concerns over their ability to continue paying their debts a "technical default" and is bring the hammer down on them.

If Regent can't renegotiate their debt, BoA may force them into bankruptcy. The purchase of the Buffalo cluster for $125-million is the biggest chunk of the debt load.

Regent has made significant moves to shore up the company recently. See Radio Business Report for more info.

If they can renegotiate the terms of the loan, it's likely to cost them even more in the long run, and impose strict restrictions - much like Citadel's recent "renegotiation" of debt covenants.

Two of Buffalo's "big three" are in big trouble. This can't be good. Who goes in the next round of cuts?

 

[Element9]

Gosh, maybe Regent Buffalo will blow out the Jack Jocks. Oh, that's right. Never mind. You really hate to read stories like this because the end result is a foregone conclusion: Staff cuts. Stories like this are further proof that managers, CEOs and COOs aren't always the sharpest knives in the drawer, they're just guys (and ladies) with expensive suits, playing with the bank's money, hoping to make a big score and retire to Del Boca Vista. Mildly amusing and indicative of the times that Bank of America is threatening to pull the plug on Regent. Bank of America. Regent. Seems they deserve each other. The TARP Twins.

 

[Yeziknoradio]

I think it's the promotions budget getting the big axe next.

I see there is no longer a banner for the shared WYRK/WBLK table on the second floor of the *Niagara casino just outside of the studio there.

...and here I thought it was great saving money by sharing the table with two very different radio formats!

(*Casino Niagara, not to be confused with the newer Fallsview casino, respectfully)

 

[Steven21]

It might be wise at this point to consider moving the actual stations to that table. Would definitely cut down on overhead. The casino could be considered the world's largest jock lounge.

Speaking of jock lounges, no THERE'S a lonely place these days.

 

[SirRoxalot]

Promotions?

Promotions budget? Now there's a quaint concept. The promotions budget is whatever the group promotions director can beg, borrow, steal, or get clients to pay for. Promotions part-timers? Maybe one per station, replacing what used to be a full-time position.

 

[ThePickleReport]

Other than cuts what options do they really have for "pulling the plug"? If B of A wants to make 25 cents on a dollar on their investment I'm sure liquidation is on the table. Otherwise, stay the course.

 

[SirRoxalot]

It all depends on whether B of A thinks it can invest that quarter in something that will generate a better return in the long run. If Regent can't pay their debt, and there are no prospects for them to do so over the long term, there's a concept called the "law of diminishing returns" that comes into play.

B of A has to make a value judgement on what the value of the stations might be in the future. If they think that stations will be more valuable post-recession, they may let Regent stay alive, figuring that they'll get more if they force liquidation in the long run. If B of A thinks that radio station values will continue to decline, then 25 cents on the dollar is better than 15 cents on the dollar.

 

[Yeziknoradio]

Re: Promotions?

Promotions budget? Now there's a quaint concept. The promotions budget is whatever the group promotions director can beg, borrow, steal, or get clients to pay for. Promotions part-timers? Maybe one per station, replacing what used to be a full-time position.

Thank-you for explaining why I won a WYRK pen for showing up and playing battle of the sexes rather than winning a possible bigger prize. ;D

This was back in late October of 2008. There were two bodies present.
One for WYRK, and one for WBLK...interesting point about how they are most likely part timers.

(***Added note: It was the WBLK dude that asked me the question, so I was expecting a WBLK pen...nope! Got a WYRK pen-the WYRK dude was handing out the same pens to people coming up to him...)

 

[Yeziknoradio]

It might be wise at this point to consider moving the actual stations to that table. Would definitely cut down on overhead. The casino could be considered the world's largest jock lounge.

Speaking of jock lounges, no THERE'S a lonely place these days.

The complication there is, that's a shared studio. (Shared with Entercom)
It surprises me that Entercom doesn't splurge a little more and screw Regent over royally by obtaining *more* rights to studio space.

The location of the studio is surrounded by a sports theme already.

Everything from off track betting, to sports betting of any sort pretty much seems to have replaced what was once all slots.

It's far more fitting to have WGR sports radio present in that studio than WBLK or WYRK.

 

[Radio_bored-Op]

Inquiry:

if Regent, was given an offer, by a nuetral-company to buffalo,
or an individual who has enough capital, would Regent
be able/willing to part w/ one of the stations from the cluster;
or, is the rule sell them as a set - no matter how bad it gets..?

am i in the market to purchase a station; no,
not yet.

just curious how the business side of the business operates.

 

[SirRoxalot]

They already did that with WECK, which they sold for (in may estimation) far more than what it was worth. If the numbers were big enough, and there were guaranties of protection for their formats, I could see them sell off WBUF, an underutilized facility with a big signal.