Regent Reorganization Plan Gets Judge's Approval
April 13, 2010 at 6:40 AM (PT)
REGENT COMMUNICATIONS received two positives rulings YESTERDAY (4/12), when U.S. Bankruptcy Judge KEVIN GROSS approved both the Chapter 11 reorganization plan and rejected a motion by RESILIENT CAPITAL MANAGEMENT to appoint a special committee to represent shareholders. Earlier this month (NET NEWS 4/5), REGENT COMMUNICATIONS had filed an objection to deny creditor RESILIENT CAPITAL MANAGEMENT's motion to appoint an Equity Committee in its bankruptcy case.
"The appointment of an Equity Committee will, by necessity, delay the hearing on confirmation of the Plan by one month. During that time, the Debtors would be in financial distress and, based on the evidence, there would be no benefit to equity because there is not a substantial likelihood of a substantial recovery for equity. The greater likelihood is that the $5.5 million available to equity under the Plan will no longer be available," wrote Judge GROSS, rejecting RESILIANT's motion.
"The reorganization plan will allow REGENT COMMUNICATIONS to emerge from Chapter 11 after only 60 days, with the financial flexibility necessary to ensure the continued pursuit of our strategic objectives," said REGENT Pres./CEO BILL STAKELIN. "This new capital structure will allow us to continue to invest in our operations and maximize our growth potential in the recovering advertising marketplace."
REGENT expects its Plan to become effective on or about APRIL 27th, once all closing conditions have been met.
All outstanding shares of the Company's common stock will be extinguished on the Plan's effective date. As provided in the Plan, the Company expects that stockholders of record holding shares on that date will receive a distribution of approximately $0.128 per share by early to mid MAY.
It was back in MARCH (NET NEWS 3/1), that REGENT COMMUNICATIONS reached an agreement in principal with its lenders for a consensual financial restructuring that was designed to reduce the Company's debt.