Interep from Chapter 11 to Chapter 7. So what’s up with SBS and Azteca America national sales?

As many of you know, Interep over the last couple of years has suffered through some tough economic conditions at the company. In an effort to work its way out of its financial woes, the company filed for Chapter 11 protection to pursue options for a private buy-out by one of their partners Oaktree Capital Partners.

It seems that has not worked and Interep filed for Chapter 7 status today in Manhattan Bankruptcy Court and will begin to liquidate assets.

This implies selling all assets, closing the company and letting go of all employees.

This could takes days, weeks and months, but it becomes problematic for all radio and television station that are represented by Interep companies, particularly Spanish Broadcasting System radio stations and Mega TV along with Azteca America TV stations, Una Vez Mas Azteca America TV affiliate group and other independent Spanish language TV station clients.

How long will Azteca America Spot TV Sales, Hispanic Independent Television Sales and SBS/Interep Radio Sales continue to operate at a level that suffices their contractual agreements with al of the represented radio and television clients?

That is very difficult to predict since there are contractual agreements that bind the stations with the rep firm, but require a performance level deliverable by a full operation company.