Alpha Media Files For Chapter 11 Bankruptcy Restructuring

Alpha Media has filed for Chapter 11 bankruptcy today as a part of a pre-arranged plan of reorganization with its creditors.

Among the unsecured creditors owed money are $103,974,381.40 in unsecured notes to ICG North America Holdings Ltd., $2,366,735.81 to Nielsen Audio, $823,829.43 to BMI, and $748,597.53 to Crown Castle Towers. Many other programming, engineering and tower companies are listed in the filing as being owed between $10,000 and $300,000.

The company has secured $20 million in debtor-in-possession financing to continue operating during the bankruptcy process. The company intends to recapitalize $267 million in debt and convert $72.6 million in debt to equity.

Alpha Media (or the “Company”) today announced that it has entered into a restructuring agreement with certain of its lenders to reduce its debt, as well as raise incremental capital to allow the Company to successfully navigate current market conditions and pursue growth opportunities. The Company expects no disruption to its broadcast operations, customers or employees. Management will remain in place and continue to maintain the Company’s day-to-day operations.

To implement the restructuring, the Company 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. Certain 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 the Company’s balance sheet will require receipt of bankruptcy court approval and certain regulatory, including FCC, approvals and satisfaction of other customary conditions. The Company expects to conclude the restructuring process in the first half of 2021.

“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,” said Alpha Media Chairman and Chief Executive Officer Bob Proffitt. “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. We believe the balance sheet restructuring will provide greater financial resources and flexibility to Alpha Media, enabling the Company 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.”

Mr. Proffitt continued, “Our core business continues to perform well despite current market challenges. 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.”

Alpha Media will continue operating its stations without interruption, providing engaging news, music, sports and entertainment to its communities. The Company’s day-to-day operations will continue in the normal course during this process. Alpha Media maintains strong relationships with its advertisers, communities and listeners, and those relationships will continue.

Sheppard, Mullin, Richter & Hampton LLP is serving as Alpha Media’s lead restructuring counsel in connection with this process, and Kutak Rock LLP is serving as Virginia counsel. Wiley Rein LLP is serving as the Company’s FCC counsel. EY Turnaround Management Services LLC and Moelis & Co. are serving as the Company’s financial advisors.

Stretto is serving as the Company’s claims agent, and additional information concerning the Chapter 11 Court process is available on Alpha Media’s restructuring website: https://cases.stretto.com/AlphaMedia. The corresponding information hotline can be accessed at the following toll-free number: (855) 395-0761.

Kramer Levin Naftalis & Frankel LLP, Quinn Emanuel Urquhart & Sullivan, LLP, McGuireWoods LLP, and Fletcher Heald & Hildreth PLC are serving as legal co-counsel to an ad hoc group of certain lenders, and GLC Advisors & Co. is serving as financial advisor.

Alpha Media has filed for Chapter 11 bankruptcy today as a part of a pre-arranged plan of reorganization with its creditors.

Alpha Media (or the “Company”) today announced that it has entered into a restructuring agreement with certain of its lenders to reduce its debt, as well as raise incremental capital to allow the Company to successfully navigate current market conditions and pursue growth opportunities. The Company expects no disruption to its broadcast operations, customers or employees. Management will remain in place and continue to maintain the Company’s day-to-day operations.

To implement the restructuring, the Company 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. Certain 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 the Company’s balance sheet will require receipt of bankruptcy court approval and certain regulatory, including FCC, approvals and satisfaction of other customary conditions. The Company expects to conclude the restructuring process in the first half of 2021.

“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,” said Alpha Media Chairman and Chief Executive Officer Bob Proffitt. “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. We believe the balance sheet restructuring will provide greater financial resources and flexibility to Alpha Media, enabling the Company 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.”

Mr. Proffitt continued, “Our core business continues to perform well despite current market challenges. 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.”

Alpha Media will continue operating its stations without interruption, providing engaging news, music, sports and entertainment to its communities. The Company’s day-to-day operations will continue in the normal course during this process. Alpha Media maintains strong relationships with its advertisers, communities and listeners, and those relationships will continue.

Sheppard, Mullin, Richter & Hampton LLP is serving as Alpha Media’s lead restructuring counsel in connection with this process, and Kutak Rock LLP is serving as Virginia counsel. Wiley Rein LLP is serving as the Company’s FCC counsel. EY Turnaround Management Services LLC and Moelis & Co. are serving as the Company’s financial advisors.

Stretto is serving as the Company’s claims agent, and additional information concerning the Chapter 11 Court process is available on Alpha Media’s restructuring website: https://cases.stretto.com/AlphaMedia. The corresponding information hotline can be accessed at the following toll-free number: (855) 395-0761.

Kramer Levin Naftalis & Frankel LLP, Quinn Emanuel Urquhart & Sullivan, LLP, McGuireWoods LLP, and Fletcher Heald & Hildreth PLC are serving as legal co-counsel to an ad hoc group of certain lenders, and GLC Advisors & Co. is serving as financial advisor.