Young Broadcasting is one step closer to completing a deal which would see its stations acquired by a cadre of secured lenders, and seven of the 10 stations managed by Gray Television.
The stations are going for $220 million to a group of banks that includes Wachovia, Oppenheimer, Eaton Vance and Credit Suisse. The new Young Broadcasting will be called, fittingly, New Young Broadcasting.
U.S. Bankruptcy Judge Arthur Gonzalez, who gave his initial Ok on the deal July 22, filed the official document yesterday in lower Manhattan. "The terms and conditions set forth in the Purchase Agreement, and the transactions contemplated thereby, represent fair and reasonable terms and conditions, including the amount of the purchase price, and constitute the highest or best offer obtainable for the assets and are fair and adequate," read the ruling.
Young's unsecured lenders had opposed the secured lenders taking over, which Judge Gonzalez has dismissed.
KRON San Francisco, WATE Knoxville and WLNS Lansing are not part of the Gray management package.
The FCC will have to approve of the acquisition.