The Portland company, which owns the radio stations KXL, KINK and KUPL – along with more than 200 other stations across the country – filed for bankruptcy on Sunday night.
Alpha Media Holdings said none of its stations would go off the air. It told employees on Monday that operations would continue as usual.
The company said it would provide the protection afforded by Chapter 11 bankruptcy to reduce its debt and raise additional capital. In bankruptcy filings filed in the Eastern District of Virginia, Alpha told the court that he had already reached a preliminary agreement to effect the restructuring,
Alpha owns properties in 44 markets across the country. Endeavor Capital, a private equity firm in Portland, has invested in Alpha and helped grow it.
According to bankruptcies, Alpha owes more than $ 267 million to its creditors. It owes more than $ 103 million to a single lender, ICG North America Holdings.
Alpha said in bankruptcy documents that its stations rely on engaging ‘live content’ to cultivate a ‘passionate’ listener base. KXL is the flagship station of right-winger Lars Larson.
Alpha also owns the sports talk station 750 The Game. John Canzano, sports columnist for The Oregonian / OregonLive, also has a daily radio program on the station.
The growing popularity of streaming and other alternatives has taken a toll on the traditional radio industry. Then the pandemic hit a big bite out of advertising sales. The company laid off staff and reduced the salaries or the requirement for others. But that was not enough to ward off the current crisis.
“Our core business is still performing well despite current market challenges,” said Bob Proffitt, Alpha’s CEO. “We will continue to invest in our talented teams to promote the unique culture that was key to Alpha Media’s success.”
Jeff Manning
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