Peak Gets Reorganization Approval
January 11, 2012 at 10:23 AM (PT)
PEAK BROADCASTING has reached an agreement with the majority of its lenders on a prepackaged plan of reorganization that significantly reduces its outstanding debt. The company filed the plan along with voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. BANKRUPTCY COURT for the District of DELAWARE in WILMINGTON.
The plan provides for payments to PEAK’s employees, vendors and other unsecured creditors, and for the business to continue in the ordinary course with no disruption.
"PEAK’s plan of reorganization is the result of a cooperative effort involving PEAK’s management and is supported by the majority of PEAK's lenders. Most important, the restructuring is not expected to impact the day-to-day operations of our radio stations," PEAK CEO TODD LAWLEY said. "Operationally, PEAK has improved its position in the markets it serves during one of the most difficult periods in radio broadcasting history. I am confident that PEAK will emerge from the restructuring with a stronger financial foundation which complements our market-leading radio positions and allows us to continue to provide premier radio programming in the communities we serve together with the uninterrupted support of our customers, employees, and vendors.