Company and Financial Partners Agree on New Capital Structure
for Long-Term Growth
Pre-Negotiated Restructuring Filed Today – Expedited Process Expected
New York, NY. March 31, 2008 ““ Interep (IREP.PK), the nation’s largest independent advertising sales and marketing company specializing in radio, the Internet, television and complementary media, announced today that it has entered into a consensual balance sheet restructuring to be implemented through a Chapter 11 plan of reorganization. This agreement, which is supported by Interep’s largest bondholders, funds managed by Oaktree Capital Management, L.P. and Silver Point Capital, L.P., allows the company to eliminate all of its existing cash-pay indebtedness. Oaktree and Silver Point have also agreed to provide Interep with a new $25 million credit facility.
“The strategic decision Interep has chosen to take today establishes a solid financial footing for the company going forward,” said David Kennedy, the company’s Vice Chairman and Chief Executive Officer. “With the agreement of the key bondholders, the company now has a plan that will reduce debt, provide the financial resources to grow, and put any uncertainty about Interep’s future behind us.”
Interep noted that its clients and customers will not be affected by the Chapter 11 process, and that the company intends to honor all obligations in the ordinary course.
The restructuring was pre-arranged and filed by Interep today with the United States Bankruptcy Court for the Southern District of New York. The plan is referred to as “pre-arranged” because it has already been negotiated with and has the support of the company’s largest bondholders, which will enable it to be implemented on an expedited basis. Interep anticipates that the reorganization will receive formal court approval within 90 days.
Mr. Kennedy added, “This agreement was made possible because of the commitment of these long-term financial partners, the outstand ing staff and management of Interep, and the tremendous radio and television station clients, agencies and advertisers the company serves. I am grateful to all of them for their patience and trust as the company has worked diligently over the past several months to address its balance sheet issues for the long-term. Today’s announcement marks an exciting new chapter for Interep, one that I’m confident will demonstrate how a well-capitalized and truly independent rep firm will be able to achieve the best possible results for everyone it serves.”