Creditors File Bankruptcy Petitions vs. Harry Pappas
13 of Pappas Telecasting's 30 Stations Filed for Chapter 11 May 10
By John Eggerton -- Broadcasting & Cable, 5/16/2008 11:41:00 AM
Pappas Telecasting chairman Harry Pappas said Thursday that three of the lenders in the Fortress loan group that financed some of the company's station purchases filed involuntary bankruptcy petitions (Chapter 7) against him and his wife, Stella.
On May 10, 13 of Pappas' 30 stations filed for Chapter 11, a voluntary bankruptcy proceeding in which the company reorganizes and creates a schedule for paying off its creditors over time.
Pappas said he will fight to have the Chapter 7 petitions dismissed, but he added that they may be converted to Chapter 11.
Pappas Telecasting, which said in a statement earlier this week that the move did not affect its other stations, blamed the Chapter 11 filings on tough financial markets and an inability to get new or replacement financing, although it maintained that many of the stations' revenue and ratings have outperformed the industry.
Chief operating officer Dennis Davis explained in an announcement of the filing that ad revenues were hit hard by the "extraordinary downturn in the housing market (affecting advertising budgets in the furniture, appliance, real estate and other related sectors) and increased energy costs, leading to reduced automotive advertising."
The company said station employees would continue to be paid and it would be "business as usual."
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Make certain to visit the website TVSpy.com In the Watercooler section there are many, many comments about how absolutely awful Harry Pappas is/was as an employer. Anyone who has ever read anything positive, or even objective, about this man needs to know "the rest of the story."
The Grim Reaper - 5/17/2008 11:43:00 AM EDT
Chapter 11 for 13 Pappas Stations
05/18/2008Pappas Selling 10 Stations
11/19/200813 Pappas Stations File Chapter 11
05/12/2008Charter Files for Chapter 11
03/27/2009Freedom Enters Chapter 11
09/02/2009
