Steel City Media joint plan of reorganization deemed effective April 1

By Caroline Salls

Pittsburgh, April 2 – The joint plan of reorganization filed by MGTF Radio Co., LLC and WPNT, Inc., which do business as Steel City Media, took effect on Monday, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of Missouri.

The plan was confirmed on March 1.

Under the plan, administrative expense claims and expenses, priority non-tax claims and general unsecured claims will be paid in cash on the plan effective date.

Priority tax claims will be paid over a period of five years, with interest accruing at a rate of 4%.

Holders of senior secured claims will retain all adequate protection payments in full satisfaction of any and all adequate protection claims. These creditors will also receive a share of a new term loan, new equity and a cash distribution equal to the amount of accrued interest, unpaid hedging obligations and unpaid fees and expenses.

Other secured claims will be paid in full in cash or reinstated or holders will retain their liens.

Holders of mezzanine loan claims will receive a share of the new term loan, new equity and additional equity.

Existing stock will be transferred to new holding companies, and existing equityholders will retain 100% of the equity in the new holding companies and an indirect 67% equity interest in the reorganized debtors.

Steel City is a Pittsburgh-based radio station owner. The company filed bankruptcy on March 20, 2018 under Chapter 11 case number 18-41671.

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