Big City Radio reaches forbearance agreement with noteholders

New York, Nov. 14 - Big City Radio, Inc. said it entered into a forbearance agreement with holders of more than two thirds of its 11¼% senior discount notes due 2005.

Under the agreement, the noteholders will not take any action on existing defaults until Jan. 31, 2003.

The termination date could be extended by mutual agreement if Big City Radio has sale agreements that will raise enough cash to pay principal and interest on the notes.

The forbearance follows Big City Radio's failure to make the interest payment due Sept. 15 on its notes. A further default was caused by the company's failure to make an offer to repurchase notes with the proceeds of its Oct. 31, 2001 sale of its Phoenix radio stations within a year of the sale closing.

The New York radio broadcaster said that as previously announced it has hired Jorgenson Broadcast Brokerage, Inc. to market and conduct an auction of its radio stations. Proceeds will be used first to pay principal and interest on the notes and to pay other liabilities. Any remaining cash will be distributed to shareholders.

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