Interep seeks case conversion in light of impending DIP loan default, key lease rejection

By Caroline Salls

Pittsburgh, Oct. 23 - Interep National Radio Sales, Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to convert its Chapter 11 bankruptcy case to Chapter 7, which is used for liquidation, according to a Thursday court filing.

According to the motion, the case needs to be converted immediately because an event of default is expected to occur on the company's debtor-in-possession financing on Oct. 24, leaving Interep in danger of losing access to all of its liquidity.

In addition, the company said some of its key leases will be deemed rejected on Oct. 27 if the case is not converted.

Interep said the conversion will automatically extend its deadline for assuming or rejecting the leases, and it believes the company's estates could benefit if it retains the leases.

Interep, a New York-based radio advertising and marketing company, filed for bankruptcy on March 30, 2008. Its Chapter 11 case number is 08-11079.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.