New Jersey Radio Station Broadcaster Files for Bankruptcy

On December 20th, Atlantic Broadcasting of Linwood NJ LLC filed for chapter 11 protection in the New Jersey bankruptcy court. The company operates the following radio stations broadcasting in Atlantic City, New Jersey:

  • WOND-AM (News/Talk 1400)
  • WBSS-AM (La Fiesta AM 1490)
  • WTKU-FM (Kool 98.3)
  • WWAC-FM (Wild 102.7)
  • WMGM-FM (The Shark 103.7)

The company is represented by Fox Rothschild LLP and the case is assigned to Bankruptcy Judge Judith Wizmur.

The company was formed in May 2008 through a $9.5 million leveraged buyout of the broadcast licenses and radio station business assets from Access.1 Communications Corp. which was led by Northwood Ventures LLC and Northwood Capital Partners LLC. Sun National Bank provided $6.5 million in secured financing for the transaction and Northwood made an additional follow-on investment in 2009. As of the bankruptcy filing, Northwood Ventures owned 75.25% of company’s equity and Northwood Capital owned 12.69% of the equity (both on a fully-diluted basis).
Court filings state that the company was unable to meet its payment obligations on the secured debt owed to Sun National and has filed for bankruptcy in order to pursue a going concern sale of its assets.
Key court filings to date include (click on the title of any document for more information or to purchase):

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