Steel City Media has filed a plan of reorganization in Federal Bankruptcy Court in St. Louis to exit chapter 11. The plan which is consensual among the company and its significant financial creditors, calls for Steel City to exit bankruptcy with a new balance sheet and with the Frischling family retaining equity control of the company.
Steel City VP Michael Frischling stated, “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 that sets the stage for future growth and profitability. We look forward to emerging from Chapter 11 early next year and we want to thank our employees and advertisers for their continued support.”
A Form 315 filing made Dec. 28 indicates that WPNT Media Subsidiary LLC is reforming as WPNT Inc. and the Kansas City-based licensee controlled by the sons of Saul Frischling — MGTF Media Company is also being changed. This new entity will see family patriarch Saul Frischling‘s voting interest and percentage of assets drop. Taking the remaining ownership interest in both entities is 54th Street Equity Holdings, a unit of New York-based Business Development Corporation of America.
WPNT Inc. is comprised of A/C WLTJ Q92.9 and Adults Hits WRRK 96.9 FM 96.9, offering Adult Hits as “BOB.”
MGTF is comprised of CHR/Pop KMXV 93.3 FM, A/C KCKC 102.1 FM, Country KFKF 94.1 FM New Hit Country KBEQ 104.3 FM.
This will also put all of Steel City’s collective debt in the hands of 54th Street.
Now, it is on track to exit Chapter 11 in early 2019.
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