| Steel City Media files its Chapter 11 re-org — and the founding family retains control. |
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Steel City Media files its Chapter 11 re-org — and the founding family retains control.
Michael Frischling, part of the family's second generation, says "In an environment where equity in radio companies is being wiped out, we are gratified that we have reached a consensual agreement with our creditors that enables us to maintain equity and operational control." It's an unusual and happy outcome for the Pittsburgh-based Frischling family - which last year faced a situation where the owner of its $24.7 million in mezzanine debt bought the nearly $38 million in senior secured debt from the main lender. That's after the lender pushed up the interest rate and required additional principal payments, amid a tough advertising environment. By this Spring, the Frischlings filed for Chapter 11 protection (March 22 NOW). There's a just-filed "consensual plan" at the federal bankruptcy court in St. Louis. If the court confirms it, Steel City should exit Chapter 11 by early next year. It was advised by Gordian Broadcast Technologies, a partnership of broker Michael Bergner and an affiliate of Gordian Group LLC. On the legal side, Steel City was repped by Robert Eggmann and Thomas Riske of Carmody MacDonald. |