Equity Media Holdings is getting a $58 million credit line, Arkansas Business reports. Silver Point Finance, a Greenwich, Conn., equity firm, provided the round. The firm is also Equity’s biggest creditor. The Little Rock, Ark., broadcaster owes Silver Point $41.5 million. The firm agreed to provide Equity (OTC: EMDAQ) with the loan under “debtor in protection” status. It includes a $9 million revolving credit line and a term loan of up to $46 million at 8 percent. The arrangement also includes the appointment of Kim Kelly as chief restructuring officer.
Equity filed for voluntary Chapter 11 bankruptcy in December, only to have Silver Point come after company assets by asking the court to change the filing to an involuntary Chapter 7. This deal resolves the despute.
Equity posted a $40.7 million loss in 2007, and mounting losses last year--$10.4 million in Q1; $12.5 million in 2Q and more than $30 million in the third quarter. The company struggled to stay afloat, selling off its Retro TV diginet and several stations last June.
Equity’s stock was delisted from the NASDAQ last month.
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