It looks like Regent Communications has cleared away the last obstacle to its likely emergence from Chapter 11 next week. It has reached a settlement with Resilient Capital Management, whose motion to have a special committee appointed to represent shareholders was rejected by US Bankruptcy Judge Kevin Gross.
Judge Gross will hold a hearing Thursday (4/22) at which he is expected to approve the settlement agreement. Under it, Regent will pay Resilient and its attorneys $125,000. In return, Resilient will withdraw its appeal of the previous decision denying its motion.
The motion to approve the settlement notes that a settlement to avoid time-consuming and burdensome litigation “is encouraged and generally favored in bankruptcy.”
With the Resilient issue settled, Regent is on track to emerge from Chapter 11 on or about Tuesday, April 27th
In addition to the $125K payment, Resilient is in line for about 6.6% of the $5.5 million to be paid to current shareholders, or about 12.8 cents per share. The reorganization plan will leave Oaktree Capital as the primary owner of Regent, with much of the debt held by Oaktree converted to equity. Unsecured creditors are to be paid in full.