After receiving FCC approval on Tuesday (see below), Alpha Media has announced it has completed its exit from Chapter 11 bankruptcy restructuring.
Alpha Media (the “Company”) today announced that it successfully completed its financial restructuring and emerged from Chapter 11 with a significantly improved capital structure. In addition to substantially reducing its debt, the Company raised incremental capital to pursue growth opportunities and further enhance its position as a leading mid-market broadcaster across 44 local markets in the United States.
“This is an important achievement for Alpha Media as we strengthen our Company’s ability to grow,” said Alpha Media Chairman and Chief Executive Officer Bob Proffitt. “Today Alpha Media begins its next chapter, with an improved financial foundation, new capital and enhanced competitive positioning. We have greater financial resources and flexibility, and we will continue to invest in new digital capabilities to better serve our advertisers and communities across our local markets.”
Mr. Proffitt continued, “I am so proud of all that our teams at each of our radio stations have accomplished during this period. Our unique culture continues to be key to Alpha Media’s success, and I thank the entire Alpha Media family for their dedication and hard work. We are thrilled to continue our mission to deliver dynamic, diverse and exciting content to our communities.”
Alpha Media’s plan has received all necessary court and regulatory, including FCC, approvals, and all customary conditions have been satisfied. With its financial restructuring complete, Alpha Media is positioned to continue serving each of the communities in which it operates across the United States.
Sheppard, Mullin, Richter & Hampton LLP served as Alpha Media’s lead restructuring counsel, and Kutak Rock LLP served as Virginia counsel. Wiley Rein LLP served as the Company’s FCC counsel. EY Turnaround Management Services LLC and Moelis & Co. served as the Company’s financial advisors. Kramer Levin Naftalis & Frankel LLP served as legal counsel to certain of the new equity holders and GLC Advisors & Co. served as financial advisor.
Original Report 7/13: The FCC has rejected Larry Wilson and Paul Stone’s petitions to deny and has approved the Chapter 11 bankruptcy restructuring of Alpha Media conditioned upon the filing of a petition for declaratory ruling within 30 days of closing on the transaction described therein, would serve the public interest.
Alpha had filed for Chapter 11 protection in January. The restructured Alpha Media USA will be a wholly-owned subsidiary of New Alpha. amilton Lane Incorporated and its subsidiaries will be the largest shareholder of the company controlling 49% of the equity and voting interests. MetLife Inc. will control 43.7% of the equity and voting interests, while Intermediate Capital Group PLC’s will hold 5.8% of Alpha. Approximately 22% of the company’s equity and 14% of voting interests will be foreign controlled.
