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.”
Read more about the filing HERE and HERE.
This is confusing. If you read CEO Bob Proffitt’s statement, it is very upbeat and positive. Ok, good!… Yet right now AlphaMedia is unable to pay their bills and creditors. … The reality doesn’t seem as positive.
No offense, but you clearly do not understand the very basics of “Business 101”.
There is no company or corporation in world history that has ever experienced the miracle — and that’s what it would be — of an unbroken, always-profitable, upward trajectory. Companies and free economies always experience ups and downs, peaks and valleys, or however you want to label it. Radio broadcasters are no different. Economies are human-run endeavors, and will always experience bumps in the road, so to speak. An educated person understands that.
“Business 101” does not include using the Federal Bankruptcy Court to avoid paying millions of billions in debt, that creditors lended to your company in good faith. “Business 101” is your company paying their bills and honoring their debt obligations. Exactly like you expect your radio stations to get paid by their advertisers.
Right on Bigger A! This on going rolling debt and the world goes on.
Wouldn’t all like to roll that debt over and over and continue?
Well, it doesn’t explain every situation, but there was this historical thing over the past year, called ‘COVID’. You might have heard a little something about it and the way it’s disrupted everyone’s lives…including that of tons of businesses, many of which are no longer around. You know…