On January 10, 2012, Peak Broadcasting, LLC and several affiliates (collectively, the “Debtors”) filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The petition lists both assets and liabilities between $50 million to $100 million. The case has been assigned to Judge Peter J. Walsh and is being administered under case number 12-10183.
According to the first-day Declaration of Todd Lawley, Chief Executive Officer and Managing Member of each of the Debtors since their formation at the end of 2006 and early 2007, as applicable, Peak Holding was formed in 2006 with the goal of becoming a radio broadcasting platform serving local, growing communities throughout the Western United States.
Shortly after Peak Holding’s formation, it invested in the acquisition of two radio stations: (1) the Fresno Cluster acquisition, which involved the purchase of seven (7) radio broadcasting stations in Fresno, California; and (2) the Boise Cluster acquisition, which involved the purchase of six (6) radio stations in Boise, Idaho. Both clusters had AM and FM stations and, according to the declaration, evidenced (or have since developed) good “power ratios,” which are measures of success in the radio industry. The Declaration reports that the economic downturn of 2008 severely affected revenues from advertisements, particularly in the Fresno Cluster stations, which in turn affected the Debtors’ ability to pay their obligations under various loans.
The case has been assigned to Judge Peter J. Walsh and is being administered under case number 12-10183.