NextMedia Also Files For Chapter 11
December 21, 2009 at 7:11 AM (PT)
Yet another radio group has filed for bankruptcy protection, as NEXTMEDIA GROUP has filed a pre-arranged plan that will hand over control to certain creditors, court papers showed. NEXTMEDIA lists between $100 and $500 Million in total debt.
REUTERS reports NEXTMEDIA's first lien debt and general unsecured claims will be paid in full while second lien debt will be converted into 95% equity in the reorganized company, said CFO ERIC NEUMANN, in an affidavit.
In a statement on its website, NEXTMEDIA said the reorganization process will have no impact on day-to-day operations and will not result in any changes to senior management or any reduction to employee headcount.
“As a result of this reorganization, we will bolster our financial position considerably, enhancing our ability to invest in our operations and execute our strategy,” said Pres./CEO STEVE DINETZ. “Over the past 18 months we have taken steps to reduce costs and increase efficiencies across our operations, while continuing to invest in our assets, content, sales, marketing and customer service. Today’s action puts us well ahead of the process in preparing NextMedia to fully capitalize on the recovery in the nation’s out-of-home advertising markets.”
Following the reorganization, the company expects to have total debt of about $128 million, NEXTMEDIA said.