Regent Roadblock For Chapter 11

[Element9]

U.S. Trustee says shareholders should vote on the Regent re-org.
Roberta De Angelis studies the March 1 debt-for-equity bankruptcy plan filed by Regent and its two major lenders - and says “not so fast.” The filing argues that since the two lenders (GE Capital, Oaktree Capital) are taking over the company and current unsecured creditors are being paid in full, the $5.5 million cash being paid out to shareholders is a “gift.” But De Angelis says “the debtors labeling it as a ‘gift’ is irrelevant." Regent claims that a vote ultimately wouldn’t matter, since it has the power to “confirm the plan” anyhow. The trustee doesn’t buy that, especially since the parties who filed want the re-org to be confirmed within 40 days. By the standards of most Chapter 11 cases, that’s Mach 3 speed. The trustee’s filing was on Thursday, and by Friday Regent had responded. It says there’s a need to balance the due process concerns of the shareholders with the “cost and time associated with soliciting out-of-the-money public equity holders.”

 

[OttoM]

Looks like the roadblock's been lifted so, much to 9's chagrin, the reorg will go forward.

 

[SirRoxalot]

Hey, 9, you pickin' & chagrinnin'?

 

[Element9]

Hey, 9, you pickin' & chagrinnin'?

Just cuttin', pastin' and reportin'. Ain't got a dog in this fight. Waiter! Your best wine. Cheers to Regent! Life's grand.

 

[bayoffundy]

The smart money says new CEO has already been chosen and will take over as soon as they come out of 11.

 

[Element9]

Looks like the roadblock's been lifted so, much to 9's chagrin, the reorg will go forward.

From what's been reported, it appears Regent encountered a few more speed bumps on the highway to re-organization. Perhaps more styrofoam packing-peanuts needed to be inserted in the pre-packaged bankruptcy filing.

Regent’s debtor-in-possession filings hit the FCC, with stations in Ft. Collins and Lafayette parked in a trust.
Though there’s also a second trust, a “contingency trust”, for the entire group of Regent stations should that be necessary for the company’s “expeditious emergence from bankruptcy while the FCC transfer approvals are pending” before the Commission. Both trusts are run by Jay Meyers of BMT (Broadcast Management & Technology). The stations that for-sure will be overseen by Meyers are singletons in Ft. Collins and Lafayette, Louisiana. The debt-for-equity takeover by Oaktree Capital triggers an end to the grandfathered status of clusters that exceed the current FCC maximums for local clusters. So rock KARS-FM, Laramie, WY (102.9) and its on-channel booster in Fort Collins (KARS-FM1) plus Lafayette-market talker KPEL-FM, Abbeville (105.1) are split off from the family and will be held by the “Fort Collins/Lafayette Divestiture Trust.” -Inside Radio 3/25/10

Large Regent shareholder says it’s being shortchanged.
Resilient Capital Management, which holds 2.8 million shares of Regent has filed a motion asking the bankruptcy court to appoint a committee to represent public shareholders in the company’s Chapter 11 reorganization. Regent’s prepackaged bankruptcy plan would wipe out all shareholders but give them a “gift” recovery in the form of a prorated share of $5.5 million. –Inside Radio 3/25/10

Sure enough, Regent stockholder Resilient asks for a fair shake for stockholders in Chapter 11.
Resilient Capital Management, sensing some kind of opportunity in Regent, started buying its beaten-down stock in December and acquired about 6.6% of its equity before the company filed for Chapter 11 in early March. Now it’s asking the federal bankruptcy court in Delaware to appoint an equity committee - “an official committee of equity security holders.” Resilient claims the evaluation of the situation by Oppenheimer & Co. is “faulty” and that the process isn’t treating stockholders fairly, with lenders GE Capital and Oaktree Capital getting 90% of the company and stockholders divvying up just $5.5 million. More to come about the Regent situation – which has lots of moving parts as it chugs down the track toward its exit from bankruptcy protection. –Taylor On Radio, 3/24/10