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Katz Media Offers $3.6 Million To Talk With Interep Clients
NEW YORK -- November 12, 2008: A filing today by Kenneth Silverman, trustee in Interep's Chapter 7 bankruptcy, asks the bankruptcy court to allow Interep to accept a cash payment of $3.64 million from Katz Media in exchange for the right to negotiate with Interep's clients. The agreement must be approved by the court before it can go into effect -- it's now on the docket for Tuesday, November 25 -- and does not represent the purchase of Interep by Katz.
According to the filing, an agreement was made between Silverman and Katz on Monday that would provide an immediate cash payment to Interep in exchange for the immediate rejection of all of Interep's radio rep contracts -- which, the filing notes, Interep "would be unable to perform for any extended period of time in any event."
Along with that goes authorization for Katz to solicit and negotiate with Interep's clients, and with its employees. This agreement is not an assignment of Interep's contracts to Katz, and the clients would be free to negotiate with any other rep firm, or none at all.
And this may not be the final word on Interep: There are reportedly other parties interested in buying all or part of the rep firm, and, as trustee, Silverman is free to consider other offers until the Katz agreement is considered by the court and approved.
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