Young Broadcasting Files For Chapter 11
Beleaguered broadcaster seeks bankruptcy protection to restructure debt
By Michael Malone -- Broadcasting & Cable, 2/14/2009 9:29:12 AM
Young Broadcasting, its stock sitting at $.04, announced it was seeking Chapter 11 bankruptcy protection.
"Our decision to restructure through a Chapter 11 filing will allow the Company to bring its debt in line with current economic realities so that we can emerge a stronger and more financially secure company," said Young Chairman Vincent Young. "It is important to note that we are restructuring our debt, not our operations. We believe that the Company will emerge from Chapter 11 better equipped to thrive in this changing economic environment with less leverage. I strongly believe that our Chapter 11 filing is in the best interests of Young Broadcasting, its viewers, advertisers, employees, and other key constituents."
Young owns 10 stations, including KRON San Francisco and WKRN Nashville. It was delisted from the NASDAQ exchange in late January.
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It appears the Young Stations may be taken over by Silver Point Capital - an investment firm which already has ownership with the Granite Station Group and also Communications Corporation of America.
I see some opportunity for KRON to possibility do something with KNTV if NBC decides to outsource their local news. KRON is doing some unique things with their local news presentation and that is what Jeff Zucker is looking for. KRON brands themselves as the Bay Area's News Station and KNTV has recently dropped their 11 and call themselves NBC Bay Area.
Since KRON is currently affiliated with MY Network an arm of the Fox Group there is word that NBC may be broadcasting some of their tv series as part of the joint venture with Fox this coming Spring on the My Network lineup.
Brian Trombetta - 2/22/2009 3:31:42 PM EST -
Most of Young's problems came as a result of NBC being mad because they got outbid.
Granted there were other problems, but the FCC had a hand in this too. Had it been anyone else that tried to move KNTV's transmitter, the FCC would've been all down their throat and denied it.
But with the money and power behind NBC and the Bush Administration, they proved money talks. Big business won. San Jose lost a TV station, the only VHF station, and SF viewers got crummy NBC reception.
If the FCC would have denied the move of transmitter, NBC would've come to agreement with Young. As I said Young had other problems too but the FCC is party to this mess
Eric Post - 2/16/2009 4:56:13 PM EST -
Hey daddy...I killed your company.
Jeff Kroll - 2/16/2009 8:17:14 AM EST -
Will be interesting to see what NBC does in San Fran now. More at wwe.geinsider.com
Stock Insider - 2/15/2009 9:13:54 PM EST -
Not surprised, the management was more interested in legal matters, stock prices and paid little attention to sales and management. Another case of corporate mentality bringing down a former proud group of stations. I remember this group nof radio stations in the 60's when they were giants. So sad.
Herb Rossin - 2/14/2009 9:12:32 PM EST
Net Revenue Down 1.8% At Young
05/06/2008Young Broadcasting Calls Off Auction
07/14/2009
