Timeline: Equity Media's Slide into Bankruptcy


A timeline of events leading to the bankruptcy filing of Equity Media Holdings Corp. of Little Rock. For the full story, click here.

Feb. 11: Henry Luken III of Chattanooga, Tenn., then chairman of the board and leading shareholder, takes over as president and CEO, replacing Larry Morton.

Feb. 13: Equity Media executes the Third Amended and Restated Credit Agreement with Silver Point and Wells Fargo Foothill Inc. Silver Point acted as administrative agent, and Wells Fargo acted as collateral agent, with several other entities acting as lenders.

March 1: Equity fails to pay interest on the credit agreement

March 19: Equity Media and the lenders execute a first amendment to the credit agreement. In the first amendment, Equity Media acknowledged failing to meet minimum revenue and earnings requirements for January, February and March.

April 28: The parties execute a second amendment to the credit agreement, providing the broadcaster with additional loans of about $2.5 million. The lenders agreed to forbear exercising their rights under the original credit agreement until May 5 or later.

May 15: Luken resigns as Equity's chairman, president and CEO.

June 24: The parties complete a third amendment to the credit agreement, including an additional term loan of $1.5 million. In the third amendment, Equity Media acknowledged that it failed to meet two interest payments and revenue and earnings requirements for April and May. The third agreement stipulated that the lenders could not exercise their rights under the agreement until Dec. 23 or until after Sept. 15 if a "termination event" occurred.

Aug. 9: Logan 12 Inc. and Univision Television Group Inc. cancel a sale agreement with Equity Media worth $15 million for a Utah television station.

Oct. 3: Silver Point provides two proposals for restructuring Equity's debt to the company's board of directors.

Oct. 4: Equity Chairman Richard Rochon rejects the option requiring Chapter 11 restructuring.

Nov. 3: Silver Point offers Equity an incremental loan of between $3 million and $5 million to allow for "an orderly sale of all of [Equity's] assets," upon learning that the company was considering filing for bankruptcy.

Nov. 15: Silver Point learns that some Equity Media board members were considering notifying employees that the company would discontinue operations and "go dark" due to "fear that it would not be able to make the next payroll." However, Silver Point receives cash projections indicating that Equity could meet payroll.

Nov. 18: Rochon informs Silver Point that its board members' suspicion that Equity could not meet payroll was wrong.

Nov. 25: Intelsat, which provides satellite broadcast service to Equity Media, demands payment of outstanding bills by Dec. 3.

Nov. 28: Silver Point terminates the credit facility and demands immediate repayment of the $41.5 million balance.

Dec. 1: The lenders determined that Equity Media is in default.