With the recent news that Interep is filing for Chapter 7 Bankruptcy and will likely go under, main competitor Katz Media Group has reportedly set its sights on Interep's client list. With Interep expected to go out of business in the near future, a court filing yesterday would allow Katz to negotiate with Interep clients and employees for a reported $3.6 million cash charge.

The news was revealed in a legal filing by Interep bankruptcy trustee Kenneth Silverman in a New York court. The proposal will go before the U.S. Bankruptcy Court for the Southern District of New York on November 25. Clear Channel-owned Katz would dominate the nation radio ad rep business if it picked up Interep's clients, which include CBS Radio.

Mediapost reports that while there is a chance a judge could refuse such negotiations, in this case it doesn't seem likely that there would be reason to. Interep is expected to close up shop by the end of 2008 but will continue with its clients' business until a court decision is announced.