Announcing it is restructuring with certain lenders to reduce its $267 million in debt, Alpha Media has filed for Chapter 11 bankruptcy protection. The Company says it expects no disruption to operations and the current management will remain in place.
CEO Bob Proffitt said COVID-19 is the reason for the filing. “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. 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.”
Proffitt added Alpha’s core radio 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.”