Equity Media to name CRO, gain access to cash collateral under settlement with Silver Point

By Caroline Salls

Pittsburgh, Dec. 23 - Equity Media Holdings Corp. received interim court approval of a settlement with credit agreement administrative agent Silver Point Finance, LLC under which a chief restructuring officer will be appointed to oversee Equity Media's bankruptcy case and the company will have access to cash collateral through Jan. 5.

The final hearing is scheduled for Jan. 23.

According to the interim order filed Monday with the U.S. Bankruptcy Court for the Eastern District of Arkansas, the settlement resolves issues related to Silver Point's motion to convert Equity Media's bankruptcy case to Chapter 7 and the agent's objection to the company's motion to use cash collateral to pay employee wages.

Under the settlement, Kim D. Kelly will be appointed as Equity Media's chief restructuring officer. Kelly will have "sole control and authority over all of the affairs and operations of each of the debtors," as well as all of the powers of the company's board of directors.

In addition, Equity Media will have access to the cash collateral of its secured lenders through 6 p.m. ET on Jan. 5, subject to extension at the sole discretion of the lenders.

Specifically, the company can use $311,473 of the cash collateral to pay employee wages. Equity Media will also have access to an additional $500,000 of cash collateral.

Equity Media, based in Little Rock, Ark., owns and operates television stations. The company filed for bankruptcy on Dec. 8, and its Chapter 11 case number is 08-17646.

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