Steel City Media Files Reorganization Plan To Exit Bankruptcy
Steel City Media has filed its Chapter 11 restructuring plan with the FCC.
Business Development Corporation of America’s 54th Street Equity Holdings will acquire a large stake in Steel City’s two license holding companies in exchange for satisfying the debt owed to lenders.
In Pittsburgh, the Frischling’s WPNT LLC will hold Hot AC “Q92.9” WLTJ and Variety Hits “96.9 Bob-FM” WRRK with Saul Frischling’s family maintaining 67% of the voting rights and 54th Street holding 33%. A Board of Directors made up of Saul Frischling, his sons Michael, Todd, and Gregg plus two appointees of 54th Street will operate the Pittsburgh holdings.
CHR “Mix 93.3” KMXV, Country 94.1 KFKF, AC “KC 102.1” KCKC, and Country “Q104” 104.3 KBEQ in Kansas City will see MGTF Radio Company being split with the three Frischling sons retaining 60% of the voting rights and 54th Street having 40%. A Board of Directors made up of Michael, Todd, and Gregg plus two appointees of 54th Street will operate the Kansas City holdings.
In both cases 54th Street Equity Holdings will own 100% of the debt and equity of Steel City Media.
Original Report 11/14: Steel City Media, which filed for Chapter 11 in March, has reached agreement with its creditors on a restructuring plan to exit bankruptcy.
The Frischling family will retain equity control of the company when the company exits bankruptcy in early 2019. The company owns CHR “Mix 93.3” KMXV, Country 94.1 KFKF, AC “KC 102.1” KCKC, and Country “Q104” 104.3 KBEQ in Kansas City and Hot AC “Q92.9” WLTJ and Variety Hits “96.9 Bob-FM” WRRK Pittsburgh.
When Steel City entered bankruptcy protection the company listed estimated assets and liabilities both between $50 and $100 million. The largest creditors included Fifth Third Bank owed $38,477,998, Business Development Corp. of America owed a loan of $24.5 million, Nielsen Audio owed $108,828.78, and Katz owed $63,905.09.
Steel City Media has filed a plan of reorganization in Federal Bankruptcy Court in St. Louis to exit chapter 11. The plan which is consensual among the company and its significant financial creditors, calls for Steel City to exit bankruptcy with a new balance sheet and with the Frischling family retaining equity control of the company.
Steel City VP Michael Frischling stated, “In an environment where equity in radio companies is being wiped out, we are gratified that we have reached a consensual agreement with our creditors that enables us to maintain equity and operational control that sets the stage for future growth and profitability. We look forward to emerging from Chapter 11 early next year and we want to thank our employees and advertisers for their continued support.”
Steel City is advised by Gordian Broadcast Technologies LLC, a partnership of radio broker Michael J. Bergner, of Bergner & Co. and an affiliate of Gordian Group LLC., a boutique investment bank specializing in complex and distressed financial advisory work. Steel City is represented by Robert Eggmann and Thomas Riske of the St. Louis, Missouri, based law firm Carmody MacDonald P.C.