• by Erik Sass  @eriksass1, April 1, 2008

Radio ad sales rep firms are seeing a wave of restructuring and new financing in the first months of 2008. But they're also feeling the squeeze, as made clear by Interep's financial filing for bankruptcy, announced Monday. Interep filed to restructure under a "Chapter 11 plan of organization" in United States Bankruptcy Court for the Southern District of New York.

The pre-arranged restructuring, undertaken with the agreement of the company's creditors, will eliminate its current cash-payment indebtedness and provide it with a new $25 million line of credit. Interep expects to get court approval for the restructuring within 90 days.

In recent years, Interep has contended with mounting financial difficulties and fierce competition from rivals, including Katz Media Group, a subsidiary of Clear Channel Communications.

In an unusually overt bid to undermine Katz, Interep tried and failed in 2003 to lure away Katz's senior executives and over 100 staffers--ho would presumably bring many of their clients with them.