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Alpha Media Bankruptcy Plan Approved, Giving Noteholders Equity

April 1, 2021, 7:56 PM

Bankrupt radio broadcasting company Alpha Media Holdings LLC won approval to convert noteholder debt to equity, after a Virginia court rejected a Justice Department challenge to litigation releases in its Chapter 11 plan.

Alpha Media wants to restructure approximately $267 million in funded debt through a plan that would fully repay senior secured liabilities and convert more than $72 million of second-lien debt into an 85% stake in a reorganized company. General unsecured creditors, which have a total of $8.5 million in claims, would be paid in full under the plan.

The U.S. Trustee’s office, the DOJ’s bankruptcy monitor, said ...