Several sources say Regent Communications, the owner of four stations in the Utica-Rome market, could be very close to defaulting on $195 million in debt on loan from Bank of America. The reports were triggered by Regent's latest SEC filing.
According to Radio Ink, the bank took issue with "language in Regent's audited financial statement for 2008." The Buffalo Business Journal says that language "involves commentary from auditors regarding 'uncertainty in the company's ability to continue as a going concern.'" The SEC document was filed yesterday.
Radio Online explains this warning from Bank of America is very serious because it triggers "a 30-day period to remedy the default or face acceleration of the entire debt, plus interest."
Reports say Regent was in compliance with its loan agreements as of December 31, 2008, and the Kentucky-based company had previously disclosed the fact it was in talks with Bank of America and other lenders to renegotiate the terms of their agreements.