Another One Bites the Dust: NextMedia Files Chapter 11, Who's Next?
I sense a theme here. Die, old media, die! (and stick with NPR, kids)
NextMedia Group Inc filed for bankruptcy protection under a pre-arranged plan that will hand over control of the U.S. radio station operator and outdoor advertising company to certain creditors, court papers showed.
NextMedia's first lien debt and general unsecured claims will be paid in full while second lien debt will be converted into 95 percent equity in the reorganized company, said Eric Neumann, its chief financial officer, in an affidavit.
The privately held company listed total debt of $100 million to $500 million in its Chapter 11 filing.
The company also said its second lien lenders had agreed to provide debtor-in-possession financing of $20 million to continue operations while in bankruptcy.
In a statement on its website, NextMedia said the reorganization process will have no impact on day-to-day operations and will not result in any changes to senior management or any reduction to employee headcount.
Following the reorganization, the company expects to have total debt of about $128 million, it said.
Senior lenders raided NextMedia and left them to die (RBR.com), perhaps sketched out by Citadel?:
NextMedia’s filing described the decline of both the radio and outdoor advertising markets in the recent recession. The company said it is significantly outperforming the overall radio industry, with revenues down only 12.5% year-to-date, versus a 21% decline for the US radio industry. While revenues for the overall US outdoor advertising industry were down an estimated 18% through the third quarter, NextMedia noted that it was down only 17%.
This might make the Billboard Liberation Front's job just a tad more difficult no?