Published on Tuesday, 01 June 2010 10:11
NextMedia Group, who operates numerous suburban Chicago radio stations, has officially emerged from bankruptcy. The radio and billboard owning company announced today that it has now completed their financial reorganization plan and emerged from Chapter 11 protection from creditors. As per that reorganization plan, NextMedia is still in the process of satisfying all legal remaining obligations to its vendors and landlords.
The company says that it has now emerged with $135 million in new financed debt, representing a net debt-to-EBITDA ratio of approximately 5.2 times. NextMedia also has now gained $55 million equity investment from new investors. These new investors are mostly made up of 2nd lien holders who agreed to convert their debt to equity and invest in the company, ultimately owning 95% of the company's equity.
NextMedia filed Chapter 11 bankruptcy on December 21, 2009, with NextMedia owing $162.3 million to its 1st lien lenders and $89.6 million to 2nd lien holders.
Steve Dinetz, President and CEO of NextMedia group said, "With the completion of our reorganization well within the accelerated timetable we set for ourselves, we have strengthened our financial position and are now solely focused on the execution of our operating and strategic plans. The process has had no impact on our day-to-day operations, and did not result in any changes to our management team or employee headcount. Indeed, we continued to invest in our operations while restructuring -- notably adding to our roster of digital outdoor displays and building out NextMedia360, our cross-platform radio and digital initiative. With our customer centric focus and strong financial footing, we are well positioned to continue to serve our clients, invest in our businesses and capitalize on the improving advertising environment."
Locally, NextMedia "officially" owns and operates only five FM and two AM radio stations in the Chicago suburbs (the maximum allowed by the FCC): WERV-FM/95.9 The River in Aurora, WRXQ-FM/100.7 RXQ in Coal City, WCCQ-FM/98.3-WCCQ in Crest Hill, WSSR-FM/Star 96.7 in Crest Hill/Joliet, WJOL-AM/1340 WJOL in Joliet/Crest Hill, WKRS-AM/1220 WKRS in Waukegan, and WXLC-FM/102.3 XLC in Waukegan. NextMedia's Chicago branch also operates WIIL-FM/95WIILRock and WLIP-AM/AM 1050, both in in Pleasant Prairie, WI, but those stations are officially not Chicago market stations, even though the majority of their listeners are indeed within the Chicago market. NextMedia also runs WZSR-FM/Star 105.5 in Woodstock and WWYW-FM/Y 103.9 in Dundee/Crystal Lake, although due to FCC regulations, those two stations have been placed in a trust to be sold
Nationwide, NextMedia Group owns and operates 33 radio stations, as well as over 5,700 outdoor advertising displays.