Alpha Media Enters Financial Restructuring With Lenders Under Chapter 11

Restructuring In Progress

ALPHA MEDIA, operating in 44 local markets, has announced that it has entered into a restructuring agreement under CHAPTER 11 with certain of its lenders to reduce its debt. The agreement will also raise incremental capital to allow ALPHA MEDIA to successfully navigate current market conditions and pursue growth opportunities. 

ALPHA MEDIA expects no disruption to its broadcast operations, customers or employees. Management will remain in place and continue to maintain ALPHA MEDIA's day-to-day operations.

ALPHA MEDIA has filed a pre-arranged plan of re-organization, disclosure statement and voluntary petition for relief under CHAPTER 11 of the UNITED STATES BANKRUPTCY CODE in the UNITED STATES BANKRUPTCY COURT in the EASTERN DISTRICT OF VIRGINIA. Some of the company’s existing lenders have agreed to provide new capital in the form of committed debtor-in-possession and exit financing. 

These lenders, together with management, are expected to collectively own 100% of the equity of the re-organized company, subject to regulatory approvals from the FEDERAL COMMUNICATIONS COMMISSION (FCC). The restructuring of ALPHA MEDIA’s balance sheet will require receipt of bankruptcy court approval and certain regulatory, including FCC, approvals and satisfaction of other customary conditions. ALPHA MEDIA expects to conclude the restructuring process in the first half of 2021.

ALPHA MEDIA Chairman & Chief Executive Officer BOB PROFFITT noted, "We have made significant progress in aggressively deleveraging our business in recent years. As we proceed with our financial restructuring to improve our capital structure and manage through the ongoing downturn caused by the COVID-19 pandemic, the agreement we reached today will leave ALPHA MEDIA well positioned for a market recovery as a stronger and even more competitive company.

“Broadcast radio is the leading reach medium in the UNITED STATES, with attractive ROIs for advertisers, and radio continues to be an indispensable communications platform nationwide," he continued. "We believe the balance sheet restructuring will provide greater financial resources and flexibility to ALPHA MEDIA, to strengthen its position as a leading mid-market broadcaster in the UNITED STATES, and invest in new digital capabilities to better serve our advertisers and communities.

“Our core business continues to perform well despite current market challenges," he added. "We will continue to invest in our talented teams to foster the unique culture that has been key to ALPHA MEDIA’s success in delivering dynamic, diverse and exciting content to our communities.”

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