Radio One Remains On Track, Despite Challenges
by R. Asmerom
Days ago, it seemed that Radio One was in trouble. Announcing that the media broadcast giant needed to extend its deadline to buy back some of its debt from holders, its stock price tumbled. However, Radio One has recovered and it seems that the incident represents a manageable hurdle for the thriving company.
“It is not necessarily a sign that the Company is in trouble, as Radio One is clearly in need of time to work through some of its debt issues, said Brandon Williams, a corporate litigator and a partner at Alston & Bird, LLP. “The forbearance agreement simply means that Radio One’s lenders have agreed to postpone, reduce, or suspend payment due on the loan for a limited and specific time period. Radio One likely has run into some difficulty staying current on its present debt facilities, but the fact that the forbearance period has not expired is signs that Radio One still has time to resolve its debt issues.”
Williams added that the company’s challenges are typical of the type of financial difficulties many companies have been facing in the past few years. “Companies have these types of issues a fair amount, especially in the economy that we have been dealing with past few years, he said. “I would say Radio One’s situation deserves a watchful eye.