Chapter 11 for 13 Pappas Stations
By John Eggerton -- Broadcasting & Cable, 5/18/2008 8:00:00 PM
An unlucky 13 Pappas Telecasting TV stations, including Fox, CBS and The CW affiliates, filed for bankruptcy protection, after the largest privately held group in the country couldn't come to terms with what it described as mostly non-bank lenders.
Pappas, which said 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 said that many of the stations' revenues and ratings have outperformed the industry.
Chief operating officer Dennis Davis blamed the "extraordinary downturn" in the housing market and slumping car sales for an advertising shortfall.
The company said employees would continue to be paid and it would be "business as usual."
But late last week, three lenders filed for Chapter 7 involuntary bankruptcy protection, attempting to recoup losses from Harry Pappas, the chairman, directly.
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