That didn’t take long! Peak Broadcasting, which entered Chapter 11 bankruptcy restructuring in January with a prepackaged plan approved by most of its senior debt holders, has now emerged from Chapter 11 with days to spare before the quarter is even over.
Peak exited Chapter 11 with a new credit facility that represents less than half the debt load the company had carried prior to its financial restructuring. Of course, it also has new owners. As previously reported, funds managed by Oaktree Capital Management and Rabobank International own most of the equity. Netherlands-based Rabobank, however, does not appear in the FCC filings because it is not an attributable owner under US ownership rules. Rather, the voting power is held by Oaktree and by GE Capital as representative of the former senior lenders.
The company notes that the senior management team remains in place with Todd Lawley as Chief Executive Officer and Tim Lyons as Chief Financial Officer. All operations continue normally for the company’s radio station clusters in Fresno and Boise.
“By significantly reducing the amount of debt outstanding on our balance sheet, this transaction provides Peak with the flexibility to invest in our business to ensure that we continue to provide best-in-market audio programming to our consumers and marketing solutions to our clients,” said Lawley.