Big City Radio, Inc. announced that the staff of the Federal Communications Commission has denied the Company's application to upgrade one of its' Los Angeles stations from Class A to Class B1.
The Company is considering its alternatives in light of the denial, including an appeal or a motion for reconsideration.
The Company also provided an update with respect to the payment of interest on its 11 1/4 % Senior Discount Notes due 2005. As previously disclosed, the Company does not have sufficient cash to make the semi-annual interest payment on the Notes, which was due September 15, 2002. Pursuant to the indenture governing the Notes, the thirty-day grace period within which the Company can make the interest payment will expire on October 15, 2002. Thereafter, an event of default under the indenture will exist. The Company is considering various alternatives including the sale of assets and the restructuring of the Notes, although there are no assurances that any such sales or restructuring will be consummated. In the absence of such sales or restructuring, the Company may need to file for protection under the United States bankruptcy laws.