March 2, 2010 (FinancialWire) — Bankrupt radio broadcaster Regent Communications, Inc. (OTC: RGCI) said it has reached an agreement in principal with its lenders for a consensual financial restructuring that will reduce the company’s debt and strengthen its balance sheet. The restructuring will result in the elimination of around $87 million of the company’s debt, according to Regent.

As part of the agreement, current senior debt-holders will convert their holdings into a new series of equity in Tegent, while current public equity shareholders will receive around 12.8 cents for each share they own.

The parties to the restructuring agreement have signed binding agreements to support the restructuring on proposed terms, subject to the finalization of definitive agreements and related documentation and the satisfaction of certain specified conditions.

Regent said it will effectuate the restructuring through a prearranged reorganization under Chapter 11, filed with the U.S. Bankruptcy Court for the District of Delaware.  

Regent added that the restructuring process will have no impact on its day-to-day operations and will not result in any changes to senior leadership.

The company said it has a current cash position of around $11 million, giving it “ample liquidity and sufficient funds” to pay all of its vendors and employees. After giving effect to the restructuring, certain funds managed by Oaktree Capital Management, a global alternative and non-traditional investment manager, will own a majority of the new equity in Regent Communications.

Regent Communications is a radio broadcasting company focused on acquiring, developing and operating radio stations in mid-sized markets. Regent owns and operates 62 stations located in 13 markets.

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