Harry and Stella Pappas have filed suit to block the sale of KCWI Des Moines to Nexstar. Nexstar agreed to acquire the CW affiliate for $3.5 million Nov. 3, subject to regulatory approval.
Pappas Liquidating Trust (PLT) is selling stations out of bankruptcy, but the Pappas pair believes the sale price in Des Moines is too low. "The proposed sale transaction is so substantially below the likely value of KCWI that it must be denied," reads the suit.
David P. Stapleton is trustee of Pappas Liquidating Trust.
Pappas Liquidating Trust owns KCWI and independent KDMI in Des Moines, which PLT argues would command $13 million apiece, or $26 million for the pair, in the incentive auction.
Titan Broadcast Management, which assists in the management of some Pappas stations, did not comment at presstime. Calls to KCWI were unanswered.
In an email, Perry Sook, Nexstar president/CEO, said the suit was "expected."
The suit was filed in U.S. bankruptcy court.
Thirteen Pappas stations filed for bankruptcy in 2008.